SOL-“Weakness Persists”

4-Hour Analysis:

Big Picture: The bearish sentiment persists as Sol falls even lower and returns to its recent low. Sol is unable to break the selling chains since there is no upward momentum. To have any sustainable gain in the future, Sol will need to go through a consolidation phase to withstand the remaining selling pressure and construct a proper base. Because there is now no solid base, any upside is being actively sold on.

On the Upside the first point of resistance comes at 40.40. Breaking this level will lead Sol back to the 44 region, followed by the EMA-50. The EMA remains a critical level for Sol to breach. This EMA has been restraining the advances since mid-May. Regaining this level will be a sign of strength. The next resistance is at 47.50, followed by 50.20. Sol must regain these levels in order to gain strength and reach 58.80. This 58.80 level is key for continued bullish movement towards the 70-72 region.

On the Downside the price of Sol is now slightly above the previous low of 37.40. This is a decent support level but if breached, another round of selling is probable, taking Sol to 34, followed by 31.50. Partially short-coverings are probable in this area.