The price of Solana (SOL) traded in the red on Tuesday after four days of gains. The price continued to be under pressure towards the support level which was near the USD 122.0 level.
Solana (SOL) Price is running out of fuel near $122.0. Prices are pausing after rising 51% from the January low. Sellers could lower Solana by nearly 30% if resistance continues.
At the time of writing, SOL/USD is trading at $110.61, down nearly 6% with 24-hour trading volume of $2,629,824,608.
SOL price faces downside risk
On the daily chart, Solana (SOL) price has pulled back from its all-time highs of November 6 at $260.0. January was a volatile month for the cryptocurrency market, SOL tested lows of $80.79 on January 24.
Source: Trade View
Since then, SOL has picked up momentum, scoring a 51% rise. However, investors are losing strength near the $122.0 level, which also coincides with 0.236% Fibonacci retracement.
The Daily Relative Strength Index (RSI) has risen towards 42 since recent highs. The recent downtick means that downward pressure in the pair remains intact.
Selling pressure has intensified after SOL fell below 50-DMA at $202.22. In addition, the formation of a ‘Doji’ candlestick just below the moving average is fueling the downward momentum.
If the price now stays below the session low, it could test the January 31 low at $89.26. Next, market participants would explore the lows made around $72.0 in August.
On the downside, a decisive close above the $0.236 Fibonacci retracement level would target the $150.0 horizontal resistance level. It would also mark the breakthrough of the crucial 50 DMA.
Next, investors can challenge the 0.50% Fibonacci retracement level at $175.0. Buyers would be rallying for a trend reversal after the Dec. 27 high of $204.82.
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This post SOL Price Today: Solana Price Continues Pressure Near 0.236% Fibonacci Retracement; What’s next?
was published first on https://coingape.com/markets/solana-sol-price-remains-pressured-near-0-236-fibonacci-retracement/