Navigating Support and Resistance
SOL breaches its $20 support, which now acts as resistance, making the $16 level crucial for potential buying interest. A downward channel pattern on the 4-hour timeframe suggests the corrective phase may persist.
SOL is currently facing significant support levels while undergoing a corrective phase on the daily timeframe. The previously established support at $20 has been breached and is now acting as a resistance. This makes the new support around the $16 range a crucial area for potential buying interest.
Additionally, looking at the 4-hour timeframe, the price is following a downward channel pattern. Unless there is a strong rebound with favorable conditions indicating a trend reversal, it is likely that the price will continue to decline. The corrective wave also suggests that the current trading pattern might persist for a while.
Given these factors, the resistance at $20 remains intact, implying a potential for further price decline if this barrier is not overcome.