Solana, Fear of $80 Collapse...All Gains Erased

▲ Solana (SOL)/AI generated image ©

After Solana (SOL) failed to settle above $85, it was pushed down to the $80 level, and short-term market sentiment is rapidly turning bearish.

According to crypto-specialized media NewsBTC on May 28 (local time), Solana gave back most of its gains after failing to settle above $85. Solana started a new downward trend below $84 and $82, and is currently consolidating losses below $82 and the 100-hour Simple Moving Average.

Solana failed to maintain a stable trend above $84 and entered a downtrend, similar to Bitcoin (BTC) and Ethereum (ETH). Subsequently, it fell below $82 and $81.50 respectively, and on the Solana/USD 1-hour chart, it broke out of a descending channel that had support at $82.

NewsBTC analyzed that bearish forces pushed Solana down to around $80, forming a low of $79.92. Solana is consolidating losses below the 23.6% Fibonacci retracement level of the downtrend from the $84.65 high to the $79.92 low.

If a rebound occurs, the immediate resistance is $81.10, and the next major resistance is around $82.20 or the 50% Fibonacci retracement level of the downtrend. The key resistance is presented as $82.80. A close above the $82.80 resistance zone could set the stage for another stable upward trend, with the next key resistance at $84.50. Further increases could target $85, according to the analysis.

Conversely, if Solana fails to overcome the $82.80 resistance, the downtrend could continue. In case of a decline, the initial support is $80, and the first major support is $78.50. A break below $78.50 could push it down to the $72 support zone, and a close below $72 could lead to a short-term drop to the $70 support level. The 1-hour Moving Average Convergence Divergence (MACD) is accelerating in the bearish zone, and the 1-hour Relative Strength Index (RSI) remains below 50.

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