4-Hour Analysis:
Big Picture: Solana is now trading in a consolidation environment following a period of significant upsurge. Consolidation at the current level will eventually benefit bulls as they regroup and re-energize for the next leg. Solana holding above the $20 line will eventually allow for an EMA-200 retest on the daily time-frame. Traders are generally advised to avoid aggressive short-selling and to adopt a buy-on-dip stance.
On the Upside Solana is having difficulty with the upper resistance band. The price surge has been aggressively halted by the barrier at 24.90. Above this level, the next barrier is at 26.60. The preceding test on 26.60 elicited a strong response. To continue higher and eventually reach the daily EMA-200 level of 30.60, Solana must overcome the 26.60 level.
On the Downside the EMA-50 level is currently protecting the price. This level of support has been trailing price. Solana’s earlier response occurred as a result of holding this level as support. As long as Solana is above the EMA-50, any bigger profit-taking scenario is off the table and unlikely. However, I f the price falls below this level, it can re-test the lower intra-day supports at 20.75, followed by 19.80.
