4-Hour Analysis:
Big Picture: Solana is in a profit-taking mode after having reached higher levels. Profit-taking continues in the form of a falling wedge, which is a positive price pattern. Price is likely to monitor profit-taking on strength while keeping an eye on buying pressure on every given drop. As of now a set of hammer candlesticks are appearing which can partially relieve the pressure.
On the Upside a number of new resistances have been introduced. The initial congestion is expected to occur at 108-109 levels, followed by 111-112 levels. These were partial support levels previously. In the meanwhile, Solana’s reaction to the trendline resistance will be crucial. If price takes a significant impulse around this area, the push could send price back into the 114.90 to 115.20 range. Although some profit-taking is to be expected.
On the Downside the support levels of 103.80 to 102.50 are once again offering assistance. This range is gradually establishing a solid foundation for Solana. Furthermore, the 4-hourly EMA-50 level happened to be in this zone, adding to the price’s supports. The first reaction from supports resulted in an appealing hammer candlestick, which is frequently a price reversal candle. Price will be able to channel higher if this range is maintained. Meanwhile, if this range is broken, Solana will fall lower into 98.75.
