4-Hour Analysis:
Big Picture: Sol’s intraday strength is still there, as it remains in the upper part of the range. A break above the falling channel resistance, on the other hand, is necessary to transform this strength into a far more sustained and momentum-based move. Otherwise, momentum might shift again, exposing Sol to current lows.
On the Upside the EMA-50 is the principal resistance. This EMA has not been recovered for more than a few hours since early April. To relieve selling pressure, the price must retake this level and begin holding above it. If this begins to happen on a regular basis, it would indicate that the bearish trend is coming to an end. However, the next resistance level is at 36-37.50. Reclaiming these resistances, followed by a break above the falling channel, might kick-start Sol’s long-awaited corrective cycle, sending it back towards 44.40 and eventually 58.80.
On the Downside the initial support level remains at 31.10. The next level of support is at 26.20. This level has recently held the downside and sparked a significant bounce, showing that it is a powerful support level. Following that, we have a huge main support level of 24-20. This level is likely to prevent further declines and trigger a wave of short-covering. This level is also as strong as the February to March 80$ support level.
