Solana Drops 15% Below $112 Support Zone

Solana (SOL) has experienced a significant decline, falling below the $112 support zone. The cryptocurrency is currently consolidating and faces challenges in maintaining its position above the $100 support level. This downward trend is part of a broader market movement, with SOL, Bitcoin, and Ethereum all experiencing similar declines. The price of SOL has dropped over 15% and is now trading close to the $102 level, having formed a low at this point. The current price action remains bearish, with SOL trading below the 23.6% Fib retracement level of the downward move from the $121 swing high to the $102 low.

On the hourly chart of the SOL/USD pair, there was a break below a key contracting triangle with support at $118. This break indicates a potential for further decline if the price fails to hold above the $100 support zone. The next major resistance levels are near $105 and $112, with the main resistance potentially at $116. A successful close above the $116 resistance zone could set the pace for another steady increase, with the next key resistance at $120 and potential gains toward the $125 level.

If SOL fails to rise above the $105 resistance, it could start another decline. Initial support on the downside is near the $102 zone, with the first major support near the $100 level. A break below the $100 level might send the price toward the $92 zone, and if there is a close below the $92 support, the price could decline toward the $84 support in the near term. Technical indicators such as the hourly MACD and RSI for SOL/USD are also showing bearish signals, with the MACD gaining pace in the bearish zone and the RSI below the 50 level.

In summary, Solana's recent decline below the $112 support zone has raised concerns about its ability to hold above the $100 support level. The cryptocurrency's price action remains bearish, with potential for further decline if it fails to break above key resistance levels. Technical indicators also support a bearish outlook, with the MACD and RSI showing bearish signals. Investors and traders should closely monitor the price action and technical indicators to assess the potential for further declines or a reversal in the trend.