Solana (SOL) Faces Barriers: Is Fresh Growth Still Possible?

Solana began a downward correction below the $230 zone. SOL price is currently recovering and faces headwinds near the $220 level.

SOL price has started a recent rally after testing the $204 zone against the US Dollar.
The price is currently below $230 and the 100-hour plain moving average.
A key bearish trend line is forming on the hourly chart of the SOL/USD pair with resistance at $220 (data source from Kraken).
The pair could start a recent rally if the bulls circle the $220 zone.

Solana Price Eyes Breakthrough Up

Solana price formed a support base and started a recent rally from the $204 level, similar to Bitcoin and Ethereum. There has been a decent rally above the resistance levels at $210 and $212.

There has been a move above the 23.6% Fib retracement level as part of a move down from a high of $243 to a low of $203. However, the price currently faces many obstacles near $220. Solana is currently trading above $218 and the 100-hour plain moving average.

On the other hand, the price is facing resistance near the $220 level. A key bearish trend line is also forming on the hourly chart of SOL/USD with resistance at $220.

The next major resistance is located near the $224 level or the 50% Fib retracement level in a downward move from a high of $243 to a low of $203. The main resistance could be $228. A successful close above the $228 resistance level could set the pace for further sustained growth. The next key resistance is $235. Any further gains could push the price towards the $250 level.

Another SOL decline?

If SOL fails to break above the resistance at $220, another decline could begin. Initial downside support is near the $212 level. The first major support is near the $205 level.

A break below the $205 level could push the price towards the $200 zone. If a close occurs below the $200 support, the price may drop towards the $188 support in the near future.

Technical indicators

Hourly MACD – MACD for SOL/USD is gaining momentum in the bullish zone.

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

Major support levels – $212 and $205.

Major resistance levels – $220 and $228.