Solana has reduced its gains and fallen below the $175 support area. The SOL price is currently approaching the $165 support level and may rebound in the short term. More information Crypto Dumplings
Solana price finds support
The Solana price is struggling to break through the $185 resistance level and has started a new downward trend like Bitcoin and Ethereum. It has fallen below the $180 and $175 support levels.
The bears have even pushed the price below $172, testing the $165 support area. The low was formed at $165, and the price is currently consolidating the decline, with the decline being less than the 23.6% Fibonacci retracement of the downward move from the $183 price high to the $165 low.
Solana is currently trading below $172 and the 100-hour simple moving average. On the upside, the price faces resistance around $170. The next major resistance level is around $172. On the SOL/USD hourly chart, a key bearish trend line has also formed, with resistance at $172.
The major resistance level may be $175, which is the 50% Fibonacci retracement of the downward move from the $183 price high to the $165 low. A successful close above the $175 resistance level could lay the foundation for a steady upward move. The next key resistance level is $182. Any further upside could push the price towards the $185 level.
Solana ecosystem thriving
The SOL ecosystem is thriving, with significant developments in various areas. Solana-based memecoins have brought liquidity to the ecosystem, increasing demand for SOL.
Recently, the popular Solana memecoin Ponke became the token with the largest 24-hour gain among the top 200 tokens by market capitalization.
Additionally, Robinhood has expanded its Solana products to the European market, offering a 1% deposit bonus to attract new users. This highlights Solana's growing appeal outside the US and demonstrates its expanding global influence.
Solana's Non-Fungible Tokens (NFTs) have performed strongly, accounting for 33% of the entire blockchain's NFT activity. Its ecosystem projects have achieved remarkable growth.
Major participants like Helium have risen by 17.72%, while the AI meme token $GOAT has soared by 231.7%. This highlights Solana's appeal in areas such as AI, DePIN, and NFTs.
Investors are focusing on key resistance levels and market trends to determine if SOL can set new highs or face consolidation.
Whales increase their holdings
A major holder has withdrawn 206,111 SOL, worth $36 million, from Binance and staked them over the past 9 days.
This large-scale increase in holdings suggests growing confidence in Solana's potential for further upside, given its recent price performance. This sustained whale interest and staking activity indicates that SOL may be poised to reach new highs.
Price Prediction: Will SOL lose more?
If SOL fails to break through the $170 resistance level, it may continue to decline. On the downside, the initial support is around $165. The first major support level is around $162.
A break below the $162 level could push the price towards the $150 area. If the closing price falls below the $150 support level, the price may drop to the $135 support level in the short term.
In summary, the SOL price has struggled around $185 and has started a new downward trend along with the broader market, currently trading below $172 and the 100-hour simple moving average. Additionally, a key bearish trend line has formed on the SOL/USD hourly chart, with resistance at $172. Going forward, it will be important to monitor whether SOL can maintain above the $165 and $162 support levels, as holding above these key supports could lead to a significant upward move.
