4-Hour Analysis:
Big Picture: Solana has finally begun profit-taking after a powerful V-Shaped rebound. Within a week, the price had risen by almost 80%. Much of this rise has been driven by outstanding short positions that had to be covered as the price began to reverse. Furthermore, with such a strong upward momentum, it is quite possible that Solana will now draw substantial fresh purchasing on a re-test of support levels.
On the Upside Price has almost returned to the key range that caused the previous severe sell-off. This range stretches from 14.40 to 15.25 levels. This level of resistance has not been broken in more than 50 trading sessions. A crucial retest remains on the cards for Solana, as a break above this level could ignite another large wave of short-covering and fresh buying, pushing the price over towards 15.60, then 16.50.
The Downside the initial support level continues at 12.95-12.75, followed by 12.40 levels. When these supports are re-tested, they are expected to create significant additional demand. Solana will see fresh buying when retesting these supports. However, if Solana falls below the 12.40 mark, it may also damage late purchasers and lay the door for a deeper pullback.
