SOL-“Attempting a Trend Reversal”

4-Hour Analysis:

Big Picture: SOL took firm support at 95.50 and triggered aggressive short-coverings, causing prices to rise very quickly. SOL is presently attempting to escape the descending channel and would need to convert the EMA-50 back into support to stop this selling spree.

On Upside at 103.90, there is substantial resistance in the shape of the EMA-50. This EMA has been driving the corrective downside trend for a few days now, and SOL would need to convert it to support to reverse the trend. However, successful regaining this level would open the door to additional upside, first to 106, then to the 108-110 zone. A stronghold over 110 opens the door to 118, followed by 121.80.

On Downside, The initial support level is 101-98.80. This level is more likely to serve as a support zone. If this is lost, SOL will be exposed once more to 95.50, followed by the 90-88 region, where strong breakout-based supports can be found.