SOL – “Strong Congestion at 34.60 Level”

12-Hour Analysis:

Big Picture: Solana has been trapped in a very thin price action. It has repeatedly tested and tried a breakthrough over the 34.60 mark, but has been rejected each time. This indicates that the 34.60 level is still being dominated by supply, and demand has been unable to penetrate it. This strong opposition has been in place for the past 22 trade sessions. Unless and until this congestion zone is broken, the upside will be constrained.

The Upside remains same with the resistance levels at 34.60-35.00. Resistances of various types have accumulated strong congestion here making it difficult for price to break. The upside is limited at this stage unless and until the price climbs and remains over 35.00. Breaking through here, on the other hand, will accelerate the advance into the 37.40 level.

On the Downside the trendline-based support is becoming more important as the price continues to reject the 34.60 level. Breaking below the ascending trendline support can signify strong selling, exposing Solana to lower support levels around 30.50 and 29.98-28.90 levels. To avoid such a scenario, Solana must get acceptability over the 34.60 mark.