solana The price failed to gain new upward momentum above the $200 level and entered a phase of correcting its gains. Currently, a decline of up to 20% is possible to test the $150 support level.
After a downside correction, Solana attempted a fresh increase above the $190 level. However, the bears remained active near the $200 resistance zone and prevented any further gains. While SOL still appears to be outperforming Bitcoin and Ethereum, some bearish signs are now appearing.
On the daily chart, SOL is trading below a key bullish trend line with support at $190. It is currently consolidating near the 23.6% Fibonacci retracement level of the upward move from the $79 low to $210 high.
It seems that the bulls are making an effort to protect the $180 support zone. If there is a downside break and a daily close below the $180 support, the situation could turn more negative.
In this scenario, Solana price is likely to decline towards the $162 support. The first significant support lies near the 50-day simple moving average, near $150. This level is near the 50% Fibonacci retracement level of the rally from the $79 low to $210 high.
The $145-150 support zone is a critical area where many touches took place and the last major breakout occurred. If the bulls fail to defend $150, the price could decline towards the $110 support.
Could Solana Price Rise Again?
On the other hand, Solana could rebound after completing a downside correction from $180 or $150. Currently, the immediate resistance level appears at $190 on the daily chart. The first major resistance is near the $200 level.
Once the $200 resistance is overcome, a convincing bullish momentum could be initiated. The next important resistance level is located near $210, above which SOL could start a rise towards the $225 resistance. More gains could pave the way for a test of the $240 level.
Recently, Solana shared details about the Wormhole project. Wormhole has the functionality to connect more than 30 blockchains and also brings an open economy to the Solana ecosystem.
Overall, SOL price is showing some bearish signals below the $200 and $190 levels. If the Solana bulls fail to maintain the $180 support, a move towards the $150 support level could be observed in the coming days.
