Solana (SOL) is trimming gains from the $255 resistance. The price is down nearly 20% and now approaches a crucial support at $198.
Solana Price Approaches Key Uptrend Support
In the last analysis, we discussed the chances of more gains in Solana if it clears the $220 resistance. The bulls did pump the price above $220 and $232. It gained over 10% and even spiked above $250. A high was formed at $254 before there was a pullback, like Bitcoin.
SOL price dipped below the $240 and $232 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $126 swing low to the $254 high.
Solana is now testing the $208 support and the 50-day simple moving average (blue). The current price action suggests the price is struggling to find support. Immediate support is near the $205 level. The next major support is $200.
The first breakdown region is now forming near $198 and a connecting bullish trend line on the same chart. The main area of interest is $190 and the 50% Fib retracement level of the upward move from the $126 swing low to the $254 high.
A downside break and close below $190, trend line, and the 50-day simple moving average (blue) might spark bearish moves. In the stated case, SOL price might decline toward $174. If the bulls fail to protect $174, there could be a drop toward the $156 zone. Any more losses could send SOL toward $142.
Another Increase In SOL?
If Solana remains stable above $198, there could be a fresh increase. Immediate resistance on the upside is near the $212 level. The first key barrier sits at $218 and $220.
A close above $220 might accelerate gains. In the stated case, the price could drift toward the $232 level. If there is a clear move above the $232 resistance, the price could drift toward $245. The next key resistance could be $255, above which the bulls could aim for a test of $272. Any more gains might send the price toward the $280 level in the coming days.
Overall, Solana price is correcting gains below $220 and $212. To start a fresh increase, SOL price must remain stable above $190 and $198. If not, the price could dip heavily toward $174 and then $156.