SOL-“Converging Triangle Formation”

4-Hour Analysis:

Big Picture: Solana continues to remain ranged within a range. For the previous two weeks, the price has been quite stable between 21.30 and 20.00. Also, price maintains the converging triangle pattern inside this range. The previous breach above the falling channel resistance failed to hold and pushed price back into the consolidation phase. Solana’s next trending move will be led by a breakout on either side.

On the Upside the session’s initial resistance is at 20.60. This level contains both horizontal and dynamic resistances, making it important for the session. Strength over 20.60 is expected to quickly lead to 21.05 and then 21.30 levels. Solana must advance and sustain above the 21.30 level to break this consolidation phase and begin a trending cycle.

On the Downside Solana has held the 20.30 to 20.00 levels quite well despite remaining under heavy pressure. This region is beginning to develop a firm foundation, which will be important in the upcoming sessions. If Solana holds this range for a little longer, an aggressive round of short-coverings may occur, pushing the price higher. On the other hand, if sellers end up overpowering this support zone and breaking through it, this will be converted into significant resistance in the near future. Furthermore, if the 20.00 threshold is broken, Solana will fall initially to 19.80, followed by 19.30 levels, with room for additional decline.