Solana (SOL) Downside Correction Hints: Can It Hold Key Support?

Solana struggled to break the resistance zone at $172. SOL price is correcting its gains and may soon test the support zone at $162.

SOL price is correcting gains from the $172 resistance zone against the US dollar.
The price is currently above $162 and the 100-hour uncomplicated moving average.
On the hourly chart, SOL/USD broke below the converging bullish trend line with support at $166 (data source Kraken).
The pair may return to the support zone at $162 before the bulls take a stance.

Retesting support for Solana Price Eyes

Solana’s price rose above the $150 and $155 levels. SOL gained momentum after closing above the resistance level at $162. However, bears were dynamic near the $172 zone.

The price started a downward correction from a high of $171, similar to Bitcoin and Ethereum. There was a move below the $168 level. The price fell below the 50% Fib retracement level in an upward move from a low of $161.23 to a high of $171.00.

Additionally, there was a break below the converging bullish trend line with support at $166 on the hourly chart of SOL/USD. Solana is currently trading above $162 and the 100-hour uncomplicated moving average.

On the other hand, the price is facing resistance near the $168 level. The next major resistance is near the $170 level. The main resistance could be $172. A successful close above the $170 and $172 resistance levels could set the pace for another sustained rally. The next key resistance is $180. Any further gains could push the price towards the $188 level.

More losses in SOL?

If SOL fails to break above the resistance at $170, another decline could begin. Initial downside support is located near the $164 level or the 76.4% Fib retracement level in an upward move from a low of $161.23 to a high of $171.00.

The first major support is near the $162 level. A break below the $162 level could push the price towards the $155 zone. If a close occurs below the $155 support, the price may drop towards the $150 support in the near future.

Technical indicators

Hourly MACD – MACD for SOL/USD is gaining momentum in a bearish zone.

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

Major support levels – $164 and $162.

Major resistance levels – $168 and $172.