SOL-“Profit-Taking on Strength Advised”

4-Hour Analysis:

Big Picture: Solana’s initial attempts to reclaim the former range bottom levels were unsuccessful. Excessive pressure is being monitored at these levels. Yet, if the Bulls are to regain their extreme bullishness, they must recover this level. This would reopen the mid-range level, but bulls would need to show strong determination to get back into the trend.

On the Upside massive pressure is being applied from the resistance levels of 20.60 to 20.30. These levels have previously served as supports for several weeks. This area will be a significant intra-day barrier for the bulls. Nonetheless, reclaiming this level will be a bullish indication and will allow for further recovery into the 21.30 level, where the 4-hourly EMA-200 is visible. Over this level, the next level of resistance is at 21.60, followed by 22.05 and 22.15.

On the Downside at 19.75, reasonable intra-day support is being formed. Maintaining intra-day support will help to keep the short-term recovery on track. However losing this intra-day level would result in lower re-tests in the 19.20 to 19.10 range. Also, to avoid the re-emergence of selling pressure, the price should preferably hold the 19.10 level, as failure to do so risks a drop into the 18.65 to 18.40 level.