Solana (SOL) Falls Below $200: Short-lived Deterioration or Trend Change?

Solana failed to overcome the resistance at $225 and confined gains. SOL is currently trading below $200 and showing several bearish signs.

SOL price began a fresh decline after failing to stay above $220 against the US dollar.
The price is currently below $200 and the 100-hour elementary moving average.
On the hourly chart of the SOL/USD pair, a connecting bearish trend line is forming with resistance at USD 204 (data source from Kraken).
The pair could start a fresh rally if the bulls circle the $205 zone.

Solana prices are falling again

Solana price struggled to clear the $220-225 zone and started a fresh decline, similar to Bitcoin and Ethereum. There was a move below the support levels at $212 and $205.

The price even dropped below the $200 level. The bottom formed at $196.73 and the price is currently consolidating losses below the 23.6% Fib retracement level resulting from the downward move from a high of $223 to a low of $196.

Solana is currently trading below $200 and the 100-hour elementary moving average. A converging bearish trend line is also forming on the hourly chart of SOL/USD with resistance at $204. On the other hand, the price faces resistance near the $204 level.

The next major resistance is located near the $210 level or the 50% Fib retracement level in a downward move from a high at $223 to a low of $196. The main resistance could be $213. A successful close above the $213 resistance level could set the pace for further sustained growth. The next key resistance is $225. Any further gains could push the price towards the $240 level.

Another SOL decline?

If SOL fails to break above the resistance at $205, another decline could begin. Initial downside support is near the $196 level. The first major support is located near the $188 level.

A break below the $180 level could push the price towards the $175 zone. If a close occurs below the $175 support, the price could drop towards the $162 support in the near future.

Technical indicators

Hourly MACD – The 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 – $196 and $188.

Major resistance levels – $205 and $210.