Solana (SOL) Holds Key Support: Is a Bounce Coming?
Date: 2024-10-04 Author: Henry Casey Categories: CRYPTO PAYMENTS
Solana price recently started to decline, falling below the $145 zone against the US Dollar. Currently, SOL price is consolidating near $142 and the 100-hour moving average. There was a small move up above the short-term descending trendline, which may signal a possible recovery attempt if the price holds above the $132 support zone.
Solana Price Decline to $132
SOL, like Bitcoin and Ethereum, began to correct after reaching a high of $162. During the decline, the price dropped below the support levels of $155 and $150, reaching $133.17. However, at $132, buyers became active, and the price began to stabilize. Subsequently, it rose above $135 and recovered some of the losses. Having reached the 23.6% Fibonacci retracement level of the decline from $1482 to $133, SOL strengthened slightly.
In addition, the price broke the short-term descending trendline with resistance at $136, which provided an opportunity for recovery. Currently, SOL is trading just below $142 and the 100-hour moving average.
Resistance for the price is at $140. The next important resistance level is located near $142, which also corresponds to the 61.8% Fibonacci retracement level of the last decline. If the price consolidates above these values, SOL may try to reach $148 again.
Will there be further decline?
If the price fails to break the resistance level at $140, there is a risk of a repeat decline. The first support line is at $135, and the main one is at $132. A break of this level could cause the price to fall to $120. If the price declines further and closes below $120, SOL could reach a support level around $112.
