SOL-“Profit-Taking on Strength Advised”

4-Hour Analysis:

Big Picture: Solana is going through a brief period of consolidation, which is currently forming a converging triangle. The next impulsive move will be led by the breakout of this triangle, although the possibility of a bullish breakout remains higher. Furthermore, Solana is currently in a strong resistance zone and must rise above the mid-point to spark another round of enthusiasm. Failure to overcome this zone will trigger a corrective phase in which Solana is likely to re-test lower supports before any further continuation to the upside.

On the Upside the first barrier is now in the shape of falling channel resistance at the 13.60 level. Surpassing this level will return the price to the 14.40 level. This area from 14.40 to 15.25 is a significant resistance level for Solana that has not been surpassed for several weeks. Furthermore, the earlier sell-off was triggered when Solana failed to break through it. Price is set to re-test this zone and will need to establish clear strength above it in order to be open to more upside.

On the Downside the intraday supports gave excellent support for the price between 12.95 and 12.75. These levels are still projected to provide solid supports because there is still plenty of demand inflow. However, as long as these supports hold, a deeper retreat is unlikely, but if Solana begins to trade below these supports, it will almost probably look for a deeper push back below 12.40 levels, followed by 11.70 for a re-test.