4-Hour Analysis:
Big Picture: Solana has been in a massive consolidating period since experiencing a vertical ascent in January. Depending on the direction of the breakout, this phase might evolve into a re-accumulation or distribution phase. Breakthrough above would result in an AB=CD pattern with higher up goals, while breakdown below the 50% Fibonacci level would result in a further corrective phase with lower supports in the spotlight.
On the Upside the Fibonacci level of 25%, along with horizontal resistances around 22.05 to 22.15, has made it tough for buyers to exceed. Strength above this level would help ease the current selling pressure, with next aims at 22.50 to 22.80 levels.
On the Downside Solana is getting closer to the range lows. Range low support levels might spark a good wave of short-coverings, but if buyers don’t step up, the coverings will only partially lift prices while the pressure continues. The downside risk grows dramatically if price begins to break down with momentum below the range supports of 20.30 to 20.20 levels.
