SOL-“Pressure Building”

4-Hour Analysis:

Big Picture: Price fails to take advantage of the possible falling wedge formation and breaks through it, allowing for additional decline. Solana’s relative strength index showed that it was struggling to break clear and go on the offensive. Going forward, price is set to challenge the month-long trendlines, and Sol must respond to it in-order to avoid aggressive slide.

On the Upside several new resistances have been created. Initially between 36.40 and 37.40. Following that, the 4-hourly EMA-200 provides resistance at 38.90. This will be a significant price recovery level. Reclaiming successfully leads to 41.10, followed by 42.30. These are significant reversal levels that Sol must recapture and create a foothold above in order to reactivate the aggression.

On the Downside the next level to watch is trendline support. They are providing support at 35.20-34.50. Bulls must maintain these levels in order to be open to any upside surge. However, losing the trendline further extends the downside initially towards 33.70-32.40 followed by 31.10.