Solana (SOL) is trading lower after reaching resistance at $160. Since the August 5 price drop, the cryptocurrency has been trading above the $120 support but below the moving average lines or resistance at $160.
Solana price long-term prediction: bullish
In other words, the bulls have hit the resistance at $160 three times. Buyers failed to sustain their bullish momentum above the recent high. If the bulls break through the current resistance, Solana will return to its previous highs of $185 and $190.
Now SOL is bearish after reaching resistance at $160. The decline extends to the moving average lines.
The uptrend will continue if Solana retraces and finds support above the moving average lines. However, the altcoin will fall if the bears drop below the moving averages. The altcoin will test its low of $127.
Analysis of SOL price indicators
On the 4-hour chart, Solana prices have fallen between the moving average lines, indicating a downturn. Selling pressure is expected to ease as the altcoin is trapped between the moving average lines. On the other hand, Solana will rise if it finds support above the moving average lines.
Technical indicators
Key supply zones: $200, $220, $240
Key demand zones: $120, $100, $80
What is the next move for Solana?
The 4-hour chart shows Solana in a sideways trend. The altcoin is trading above the $140 support and below the moving average lines, which offer resistance at $160. Solana is currently confined to the moving average lines. It will fall further if the 50-day SMA support is breached.
Coinidol.com reported previously that on September 21, the uptrend hit an early obstacle at $150 before returning above the moving average lines.
Disclaimer. This analysis and forecast are the personal opinions of the author. They are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.
Source: https://coinidol.com/solana-slide-eases/