Solana (SOL) Drops Toward Support — Bulls Eye Potential Recovery Base

Solana failed to stay above $198 and corrected gains. SOL price is now trading below $195 and might find bids near the $188 zone.

SOL price started a downside correction below $198 against the US Dollar.
The price is now trading below $195 and the 100-hourly simple moving average.
There is a declining channel forming with resistance at $200 on the hourly chart of the SOL/USD pair (data source from Kraken).
The pair could extend losses if it dips below the $188 zone.

Solana Price Approaches Support

Solana price failed to surpass $205 and started a downside correction, beating Bitcoin and Ethereum. SOL dipped below $200 and $198 to enter a short-term bearish zone.

There was a move below the 23.6% Fib retracement level of the upward wave from the $177 swing low to the $205 high. However, the bulls are active near the $192 support. Besides, there is a declining channel forming with resistance at $200 on the hourly chart of the SOL/USD pair.

Solana is now trading below $195 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $198 level. The next major resistance is near the $200 level. The main resistance could be $205. A successful close above the $205 resistance zone could set the pace for another steady increase. The next key resistance is $220. Any more gains might send the price toward the $225 level.

Downside Break In SOL?

If SOL fails to rise above the $198 resistance, it could start another decline. Initial support on the downside is near the $192 zone and the 50% Fib retracement level of the upward wave from the $177 swing low to the $205 high. The first major support is near the $188 level.

A break below the $188 level might send the price toward the $184 support zone. If there is a close below the $184 support, the price could decline toward the $177 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.

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

Major Support Levels – $192 and $188.

Major Resistance Levels – $198 and $200.