Solana, misses rebound opportunity and plummets?...'If it can't cross here', it's at risk of falling to $75

▲ Solana (SOL)/ChatGPT generated image

Solana (SOL) turned bearish after failing to settle above $92, putting its key support levels to the test. With bearish signals strengthening on short-term charts, the defense of $84 and $82.5 has emerged as a critical variable that will determine the possibility of a future rebound.

According to crypto media outlet NewsBTC on May 20 (local time), Solana failed to maintain a stable trend above $92 and entered a new downtrend. It subsequently fell below the $90 and $88 lines, and selling pressure pushed the price down to around $83. The low was formed at $83.35.

Technical trends also lean towards short-term bearishness. Solana showed bearish signals below the 23.6% Fibonacci retracement level of the downtrend from the high of $93.63 to the low of $83.35. On the hourly SOL/USD chart, a connecting bearish trend line forming resistance around $85 was also confirmed. The data source is the Kraken exchange.

On the upside, $85 was presented as immediate resistance. The next major resistance is $85.8. The key resistance zone was analyzed at $88.5. This price level coincides with the 50% Fibonacci retracement level of the downtrend from the high of $93.63 to the low of $83.35. If Solana forms a closing price above the $88.5 resistance zone, it could lay the groundwork for a further upward trend. The subsequent major resistance is $90, and if the uptrend continues, it could move to the $92 zone.

Conversely, if Solana fails to break the $88.8 resistance, downward pressure may continue. The first support level on the downside is around $83.5. The first major support level is presented at $82. If it falls below $82, the likelihood of a drop to the $80 support zone increases. If a closing price is formed below $80, the decline could extend to the $75 support level in the short term.

Technical indicators also heighten caution. The hourly Moving Average Convergence Divergence (MACD) is accelerating in the bearish zone, and the hourly Relative Strength Index (RSI) remains below 50. NewsBTC presented Solana's key support levels as $83.5 and $82, and key resistance levels as $85.8 and $88.5.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*