SOL-“Reaction Required”

4-Hour Analysis:

Big Picture: Recently, SOL appears to be travelling in a downward channel. However it has once more taken support of the demand area. A reasonable reaction is being observed, and regaining the 100 level may result in another re-test of the channel resistance at the 105 level. However, if this reaction is not sustained, SOL will be exposed towards the bottom of the channel.

On Upside the 98 level is a powerful initial barrier level, followed by the 100 mark. SOL is going to struggle at current levels, but if it can retake them, the upside will be extended to the 105 area. This is where channel resistance is seen hence making it a key resistance area.

On the Downside the fall is now being held by a 4-hour based demand zone at 96-93. SOL will suffer a significant setback if they lose this. It’s expected to be exposed first to 90-88, then to 82, and finally to the range lows once more. Expect volatile price action from SOL in the coming days as a major trend struggle is expected.