1-Day Analysis:
Big Picture: The rejection of channel-based resistance triggered a violent sell-off, with SOL falling over 23% in just a few sessions. However, given the vertical tendency, this was to be expected. Hyper moves generally goes through a correction phase like this. SOL is currently entering the domain of strong supports, which will prevent additional declines. These levels must hold, otherwise, things could turn ugly for SOL if these levels don’t work as a bottom. If SOL is successful in defining this area as the short-term bottom, the next phase should see 170-180 in the future sessions.
The Upside initial resistance is seen at 118 followed by 122 region. SOL would need to reclaim the lost EMA-200 daily. Stronghold above 123 will take SOL towards 127 and 130 once more. A successful breakout above 131 is required to once more pave path towards the falling channel resistance at 140.
On Downside, between the levels of 115 and 112, there is a lot of support. For a few hours now, these levels have been safeguarding SOL from further decline. If this support is lost, we’ll be looking at 110, then the 107-104.50 area. These levels are likely to act as firm bottom for the day, protecting any further losses.
