SOL Price Prediction: Solana Turns Sell On Rallies As It Breaks $20

2023-05-25 04:37:23

Solana gained bearish momentum and traded below $20 against the US Dollar. SOL price might now struggle to recover above the $20 and $21 resistance levels.

SOL price is showing bearish signs below the $20.50 resistance against the US Dollar.
The price is now trading below $19.80 and the 100 simple moving average (4 hours).
There is a major bearish trend line forming with resistance near $19.90 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could recover but upsides might be limited above $20.

Solana Price Extends Losses

This past week, Solana’s price started a fresh decline from well above $21. SOL gained bearish momentum and was able to trade below the $20.50 support.

The bears gained strength and pushed the price below the $20 support. The price is now showing bearish signs below $20, similar to Bitcoin and Ethereum. A low is formed near $18.70 and the price is now consolidating losses.

SOL is now trading below $19.80 and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $19.90 on the 4-hour chart of the SOL/USD pair. On the upside, immediate resistance is near the $19.80 level and the trend line.

The next major resistance is near the $20 zone or the 50% Fib retracement level of the downward move from the $21.51 swing high to the $18.70 low. The main resistance is now forming near the $20.50 level and the 100 simple moving average (4 hours).

Source: SOLUSD on TradingView.com

The 61.8% Fib retracement level of the downward move from the $21.51 swing high to the $18.70 low is also near $20.50. A close above the $20.50 level could resend the price toward the $21.50 resistance zone. Any more gains might send the price toward the $22 level.

More Losses in SOL?

If SOL fails to clear the $20.50 resistance, it could continue to move down. Initial support on the downside is near the $19.00 level.

The first major support is near the $18.80 level, below which the bears might gain strength. In the stated case, Solana price may perhaps decline toward the $18.20 support. The next major support is near the $17.50 level.

Technical Indicators

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

4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $18.80, and $18.20.

Major Resistance Levels – $20.00, $20.50, and $21.50.

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