Solana (SOL) struggles to break key resistance after this suffers a huge loss on a hot wallet hack, losing over $5 million creating so much panic in the hearts of many devotees.
SOL price looked strong at the start of the week, trading above $40, trying to break through resistance before having an attack on some wallets draining over $8 million from Solana users. It is now struggling to break above the 50 exponential moving average (EMA) on the 1 hour (1H) chart.
SOL Daily Chart Analysis
SOL’s daily chart shows it is trading at $38.7 below the 50 and 200 exponential moving average after a recovery rejection from this region earlier this week.
This means that SOL will have to break above this earlier claimed resistance; this is a region that SOL has struggled to recover on the daily chart.
SOL volume indicates that there is no buying activity due to the recent incident that affected SOL’s price.
For SOL to trade higher, it needs to break that daily resistance at $40.9; otherwise, we could see pullbacks in the $36.6 region if the bulls don’t intervene.
The $36.6 region is an area of high demand where more buyers lately have seen SOL in a good position to accumulate.
Major resistance on the daily chart – $40.9.
Major support on the daily chart – $36.6, $32.
SOL price analysis on the 4H chart
The price of SOL on the 4H chart shows that the price is in a downtrend with swing lows respecting the trendline acting as resistance.
SOL must break to the upside of this channel for a change in trend.
SOL is trading below the 50 and 200 EMA indicating a downward trend direction for the period until a recovery of the resistance level above the $40 mark before a change trend can occur.
If SOL fails to recover and break above the $40 resistance, it would likely revisit the 4H support region of $35 and $32.
Volume on the SOL chart indicates more selling pressure versus buying, and if the bulls are unwilling to step in, then areas of support would be ideal for SOL to create more buying offers.
The Relative Strength Index (RSI) for SOL is below the 40 mark, indicating more selling than buying at the moment.
Resistance on the 4H chart – $40.9.
Support on the 4H chart – $35, $32.
Graphic analysis SOL 1H
SOL price over the 1-hour time frame is in an asymmetric triangle indicating a crucial moment for SOL price. There would be a breakout of this region on the upside or downside of the chart.
A break to the upside, SOL will need to overcome resistance in the region of $39.7 and $40.9 for further upside.
A break down, SOL will need to hold supports around $37.7 and $35; if not, we could visit more regions with high demand $32
Resistance on the 1H chart – $39.7, $40.9.
Support on the 1H chart – $37.7, $35.
Featured image from Analytics Insight, Charts from TradingView.com