Solana (SOL) is correcting gains from the $238 resistance. The price is testing a crucial support at $218 and might dive before a fresh increase.
Solana Price Reaches Key Uptrend Support
Earlier this month, Solana attempted a fresh increase above the $220 resistance. The price climbed above the $225 and $232 levels. However, the bears remained active near the $238 zone and prevented more gains. A high was formed at $237.73 and the price started a downside correction, like Bitcoin.
SOL price dipped below the $232 and $225 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $191 swing low to the $238 high.
Solana is now testing the $218 support and the 50-day simple moving average (blue). The current price action suggests the price is struggling to stay above $218-$220. If the bears protect a fresh increase, there could be more downsides.
Immediate support is near the $218 level and the 50-day simple moving average (blue). The next major support is $210 and the 61.8% Fib retracement level of the upward move from the $191 swing low to the $238 high. Besides, there is a major contracting triangle forming with support at $208 on the daily chart.
A downside break and close below $210 and the triangle’s trend line might spark bearish moves. In the stated case, SOL price might decline toward $192. If the bulls fail to protect $192, there could be a drop toward the $180 zone. Any more losses could send SOL toward $162 since it is close to the 1.618 Fib extension level of the upward move from the $191 swing low to the $238 high.
Another Increase In SOL?
If Solana remains stable above $208, there could be a fresh increase. Immediate resistance on the upside is near the $226 level. The first key barrier sits at $230 and the triangle’s upper trend line.
A close above $230 might accelerate gains. In the stated case, the price could drift toward the $238 level. If there is a clear move above the $238 resistance, the price could rise and test $248. 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 $285 level in the coming days.
Overall, Solana price is correcting gains below $232 and $225. To start a fresh increase, SOL price must remain stable above $210 and $208. If not, the price could dip heavily toward $180 and then $172.