After suffering a massive loss due to a hack of its wallet, Solana (SOL), struggles with key resistance. It has lost over $5M and this panic causes many believers anxiety.
SOL was trading at $40 in the beginning of the week. However, it tried to break resistance and then suffered an attack by some wallets. This resulted in Solana users losing more than $8 Million. On the hourly (1H) chart, it is still struggling to exceed the 50 exponential moving Average (EMA).
SOL Daily Chart Analysis
The daily chart for SOL shows it is trading at $38.7 below the 50 & 200 exponential moving average after a reject from reclaiming this region early this week.
SOL must break through the resistance that was claimed earlier. This is a territory SOL has had difficulty reclaiming on the daily chart.
SOL volumes indicate that there are not any buy activity due to recent events which have affected SOL’s price.
SOL must break the daily resistance at $40.9 in order to move higher. Otherwise, there could be some pullbacks in the area of $36.6, if bulls don’t step in.
SOL is in strong demand in the $36.6 region.
Major resistance on the daily chart – $40.9.
Major support on the daily chart – $36.6, $32.
SOL Price Analysis on The 4H Chart
SOL is showing a 4H chart that it is in a downtrend. Swing lows against the trendline act as resistance.
SOL should break from the downside of this channel in order to make a shift in trend.
SOL is trading below the 50 & 200 EMA, indicating a downtrend direction for the period until a reclaim of the resistance level above the $40 mark before a trend shift can occur.
SOL will likely return to the support area of $32 and $35 if it fails to recover and surpass the resistance at $40.
Volume on the SOL chart shows more sell pressure than buys. If bulls don’t step in then it would make sense for SOL support areas to allow them to increase their buy bids.
SOL’s relative strength index (RSI), is lower than 40, which indicates that there are more buys than sales.
Resistance on the 4H chart – $40.9.
Support on the 4H chart – $35, $32.
SOL 1H chart analysis
SOL’s hourly price is located in an asymmetric triangular area. This indicates that it’s a critical time for SOL. There would be a breakout from this region to the chart’s upside or downside.
SOL must overcome resistance in the region of $39.7 to $40.9 to make a breakout on the upside.
SOL needs to maintain the support levels at $35 and $37.7 respectively. Otherwise, SOL could travel to more areas with high demand for $32
Resistance on the 1H chart – $39.7, $40.9.
Support on the 1H chart – $37.7, $35.
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