4-Hour Analysis:
Big Picture: Solana’s intense selling pressure was indicating a re-test of range lows. Price has retested that area and, as foreseen, has taken an initial bounce from it. This implies that demand is still present at the lows. The range should be honored as long as it is valid. Nonetheless, this range will eventually break sooner or later, resulting in an expansion phase on either side.
On the Upside any price squeeze caused by short-covering would initially target 21.35 and 21.60 levels. In the case of a prolonged price squeeze, Solana could climb between 22.05 and 22.15 levels. Price is expected to encounter significant resurgence of selling pressure at these levels, limiting additional upside possibilities. Albeit, a price breakout above the falling channel resistance could be key in slowing this intense selling.
On the Downside the range low support levels of 20.60 and 20.30 are being tested once again. These are critical supports for Solana to hold in order to keep the price inside the range. But, if selling pressures breaches the range low supports, Solana could fall deeper into the 19.70 to 17.40 area, filling all untapped inefficiency.
