Big Picture: Solana is currently entering an extensive consolidation period following its massive upward surge. This ongoing consolidation will almost certainly result in another impulsive move on either side upon its breakout. Bulls would need to reclaim strength over 63.95 in order to move higher and possibly take on the developing channel resistance. On the other side, a possible head and shoulder pattern is forming, which if broken might push some aggressive profit-taking down. As a result, aggressive risk management is recommended for upcoming sessions.
On the Upside recently lost levels of 57.00 and 59.10 will form the session’s primary resistance levels. Price may encounter some difficulties around these levels of resistance. Meanwhile, the second wave of resistances is located between 60.90 and 61.90. However, the bullish breakout for Solana begins to occur once again above the 62.20 to 63.95 levels. Surpassing this range is expected to rekindle some significant momentum.
On the Downside a major lower-time frame supporting zone exists between 55.05 to 53.50 levels. With the exception of a single outlier, this zone has consistently held Solana during the previous ten sessions. Price has responded strongly to this level on several occasions. Furthermore, this region holds the neckline support of the head and shoulder pattern. As a result, this support is significant since maintaining it would counteract any lower runs; nevertheless, pressure built below this level exposes Solana to the lower support band at 49.50, followed by 46.90, where the 4-Hourly EMA-200 is also located.