SOL – “Sellers Momentum Weakening”

4-Hour Analysis:

Big Picture: Solana was unable to generate a relief bounce since pressure stayed constant. This entire action resulted in breach of another critical support level. However, with price printing combinations of lower lows and lower highs, the indicator did not follow the price, resulting in a bullish divergence. To make this divergence work, Solana must retake a critical level of 37.40 in order to provoke a big round of short-coverings.

On the Upside the initial resistance level is 36.40, followed by 37.70. If these levels are breached, the price will rise towards 38.40-39.20 followed by 40.50. Solana would need to be above 41.10-42.30 to be back in the neutral zone.

On the Downside 33.70 was recently tested. It sparked a positive reaction and pushed prices back. Overall, the zone between 33.70 and 32.40 has strong support. The next level of support is found at 31.10.