Solana’s SOL cryptocurrency is holding steady above the $19.00 support level. If the price manages to close somewhere between $20.20 and $20.50, it might see a significant rise.
In the previous SOL price prediction, we talked about the possibility of the price dropping further against the US Dollar. Unfortunately, that’s what happened as the price steadily declined and went below the $20.50 support.
The price also closed below the $20.20 level and the 50 simple moving average on the 4-hour chart (shown in blue). However, the bulls appear to be putting up a strong fight around the $19.00 level.
Lately, there has been a slight upward correction, with the price moving above the 23.6% Fibonacci retracement level of the recent downward move. This drop was from the $22.05 swing high to the $19.03 low.
Solana’s 4-hour price chart. Source: SOL/USD on TradingView.com
The SOL price made an attempt to rise above $20.00, but it encountered resistance from the bears around $20.50. Bulls tried twice to push SOL above $20.50, but their efforts were unsuccessful.
It faced rejection near the 50% Fibonacci retracement level of the recent downward move, which was from the $22.05 swing high to the $19.03 low. Currently, Solana is trading below the $19.80 level and the 50 simple moving average on the 4-hour chart, similar to Bitcoin and Ethereum.
Additionally, there’s a notable bearish trend line forming, with resistance around $19.80 on the 4-hour chart. On the upside, the immediate resistance is at approximately the $19.70 level, with the first major resistance found near the trend line.
If SOL manages to break above this trend line, it may head toward the $20.20 resistance level. The primary resistance level to watch is around $20.50. A successful daily close above $20.50 could potentially trigger a new uptrend.
The next significant resistance lies near the $22.00 zone. If SOL manages to surpass $22.00, it could aim for the $25.00 resistance zone.
Further Declines Ahead?
On the flip side, Solana (SOL) could face challenges in surpassing the $20.50 resistance level. In such a scenario, the price may continue its downward trajectory, heading towards the $19.00 support.
If the price closes below $19.00, it could potentially drop even further, approaching the $18.00 support. Further losses might then open the path for a move down to the $17.50 support.
In summary, SOL is currently encountering resistance around $20.50. If the bulls cannot defend the $19.00 support, there’s a possibility of more declines. However, if things turn in favor of the bulls, the price could aim for $22.00.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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