Why Upsides Could Be Limited in SOL

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Solana tumbled below the $20 and $15 levels against the US Dollar. SOL price is now recovering, but upsides might be limited above $15 and $17.

  • Sol price traded as low as $10.92 before it recovered a few points against the US Dollar.
  • The price is now trading below $15 and the 100 simple moving average (4-hours).
  • There was a break above a major bearish trend line with resistance near $12.45 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
  • The pair could face a strong selling interest near $15 and $17 in the coming days.

Solana Price Starts Short-Term Recovery

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

Sol price even dumped below the $15 level. Finally, it found support near $11 and traded as low as $10.92. Recently, there was a minor upside correction similar to bitcoin and ethereum. The price was able to climb above the $11.50 and $11.85 levels.

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

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

Source: SOLUSD on TradingView.com

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

Fresh Decline in SOL?

If SOL fails to clear the $15 resistance, it could start a fresh decline. An initial support on the downside is near the $13.00 level.

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

Technical Indicators

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

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

Major Support Levels – $13, $12 and $11.

Major Resistance Levels – $15, $17 and $20.

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