SOL-“Profit-Taking on Strength Advised”

4-Hour Analysis:

Big Picture: As sellers maintain control of the short-term trend, Solana eventually fills Monday’s wick. Price activity continues in establishing lower highs and lower lows formations, implying further downside in the coming days; however, a major supportive layer in the shape of trendlines is finally coming into play. As key levels come into play, Solana is expected to get considerably more volatile.

On the Upside the session’s initial resistance is certainly at 66.85 level. Above this level, the 68.20 level, which was previously a good support, could now pose a strong challenge to bulls. This resistance around 68.20 may restrict the session’s upside; but, if bulls are able to squeeze higher, they may be able get back to the 72.80 barrier.   

On the Downside Solana has many supports that converge in the 64.30 to 63.95 area. The prior test into this range saw a strong rebound higher, but as of right now, the initial retest has seen some reasonable bounce, but the reaction is not too substantial. Bulls would need more strength to keep this territory. Solana, breaking this supportive zone will be a short-term setback for the bulls which would then be exposing price lower towards 61.90 to 60.90 levels.