Home CryptocurrencyAnalysis Why upsides may be limited in SOL

Why upsides may be limited in SOL

by SuperiorInvest

Solana fell below the $20 and $15 levels against the US dollar. The price of SOL is now recovering, but the upside may be limited above $15 and $17.

  • Sol traded as high as $10.92 before recovering several points against the US dollar.
  • The price is now trading below $15 and the 100 simple moving average (4 hours).
  • On the 4-hour chart of the SOL/USD pair (data source from Kraken), there was a break above the main bearish trend line with resistance near $12.45.
  • The pair could face strong selling interest near $15 and $17 in the coming days.

Solana Price begins a short-term recovery

This month, the price of salt saw a strong downward movement below the $30 level. There was a strong move below the $25 and $20 support levels.

The price of Sol even fell below the level of 15 USD. Finally, it found support near $11 and traded as high as $10.92. There has recently been a minor upside correction similar to bitcoin and ethereum. The price managed to climb above the $11.50 and $11.85 levels.

Additionally, there was a break above the major bearish trendline with resistance near $12.45 on the 4-hour SOL/USD chart. However, the pair is still trading below $15 and the 100 simple moving average (4 hours).

On the upside, immediate resistance is near the $15 level and the 100 simple moving average (4 hours). Another major resistance is near the $17 zone. It is near the 23.6% Fib retracement level of the main decline from the $38.75 swing high to the $10.92 low.

Source: SOLUSD on TradingView.com

A close above the $17 zone could send the price towards the $20 level in the near term. Any further gains could send the price towards the $25 level.

A new drop in SOL?

If SOL fails to clear the $15 resistance, a new downtrend may begin. Initial downside support is near the $13.00 level.

The first major support is near the $12 level. Another major support is near the $11 level or the recent low. If there is a downside break below the $11 support, the bears may even push the price below $10.

Technical indicators

4-Hours MACD – MACD for BNB/USD is losing momentum in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for BNB/USD is currently above the 50 level.

Main support levels – $13, $12 and $11.

Major resistance levels – $15, $17 and $20.

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