SOL-“Resistances Approaching”

4-Hour Analysis:

Big Picture: On lower time frames, SOL is beginning to establish bearish divergence. This indicates that SOL is in desperate need of a correction. With significant resistance in the 112-115 level, aggressive profit-taking cannot be ruled out. However, there are a number of solid supports below 104.50, which are likely to attract aggressive buying once more.

On Upside After repeated efforts, SOL has failed to close any 4-Hour candle over the 112.50 level. This level will act as a strong obstacle for the rest of the day. However, the next resistance level is at 115, which is likely to operate as a similar solid barrier. These ranges are expected to limit gains for the day, but in the event of extended upside, the EMA-200 will likely be tested between 118.50 and 119.50. Any move over 115 is considered a hyper move, and rejection on hyper moves lengthens the overall correction period.

On Downside SOL needs to cool-off with 107 as initially support for the day followed by 104.50. These levels are very good intra-day supports. However upon breach SOL can extend the corrective reversal with 100 and 98.50 in sight.