Solana (SOL) Price Analysis: Bears In Control Below $50

Solana (SOL) Price Analysis: Bears In Control Below $50

June 1, 2022

Solano price is struggling below $50 against the US Dollar, similar to bitcoin. SOL could decline sharply if there is a clear move below the $40 support.

Solana (SOL) Price Analysis

SOL price remained in a bearish zone below the $65 and $60 levels. There was another decline and the price traded below the $55 support zone.

The pair settled below the $50 support zone and the 55 simple moving average (4-hours). It even spiked below the $40 level and traded as low as $39.93. It is now consolidating losses and trading above $42. There was a break above the 23.6% Fib retracement level of the downward move from the $59 swing high to $39 low.

On the upside, an immediate resistance is near the $48.00 level. There is also a key bearish trend line forming with resistance near $48.20 on the 4-hours chart of the SOL/USD pair.

The next major resistance is near the $50 level. It is close to the 50% Fib retracement level of the downward move from the $59 swing high to $39 low. Any more gains might send sol price towards the $55 resistance zone. The next major resistance sits near the $60 level.

On the downside, an initial support is near the $42 level. The next key support is near the $40 level. A downside break below the $40 support level might spark a sharp decline. In the stated case, the price may perhaps decline towards the $32 level. Any more losses might call for a test of $30.

Solana (SOL) Price

Looking at the chart, solana price is clearly trading below $50.00 and the 55 simple moving average (4-hours). Overall, the price must clear $48 and $50 to start a fresh recovery wave in the near term.

Technical Indicators

4 hours MACD – The MACD is now losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is now near the 50 level.

Key Support Levels – $42.00 and $40.00.

Key Resistance Levels – $48,20, $50.00 and $60.00.

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