Solana, Buying Pressure 'Wiped Out'...Was $86 a Trap for Retail Investors?

▲ Solana (SOL)

Solana (SOL) failed to hold above $86 and gave back its recent gains. The buying pressure that had fueled hopes for a short-term recovery wavered below $85 and $84, and analysis suggests that the decline could deepen if even the $82.5 support level breaks.

According to NewsBTC on May 26 (local time), Solana entered a downward correction after failing to stabilize above $86. The price fell below $85 and dipped below the 100-hour simple moving average, entering a short-term bearish phase. On the hourly chart, a descending channel with $82.5 as a support line has formed.

Solana fell below the Fibonacci 50% retracement level of its rally from the $81.37 low to the $87.39 high. Subsequently, it tested the $83.65 support level, and the bottom of the descending channel near $82.5 was presented as the next defense line. If buying pressure fails to hold this zone, short-term market sentiment could quickly freeze again.

On the upside, $85.5 was identified as the first resistance level. The next major resistance is $86, and the key resistance is $87.4. If Solana closes above the $87.4 resistance zone, it could establish a further upward trend, with the next resistance suggested at $92. Analysis also indicated that if the uptrend continues, it could open up to $95.

Conversely, if it fails to break the $86 resistance, further declines could begin. The short-term support level is $83.5, which coincides with the Fibonacci 61.8% retracement level of the rally from the $81.37 low to the $87.39 high. The first major support level was presented at $82.5.

A break below $82.5 could push it down to the $80 support zone. If it closes below $80, it could fall to the $75 support level in the short term. The hourly Moving Average Convergence Divergence (MACD) is accelerating in bearish territory, and the hourly Relative Strength Index (RSI) remained below 50. Key support levels were presented at $83.5 and $82.5, and key resistance levels at $85.5 and $87.4.

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