Key Support Levels using a Solana ($SOL) - 4-Hour Chart and VWAP Anchored to ATH
The Current Price Action
From the 4-hour chart provided, Solana ($SOL) is trading near $215.75, with a recent rejection below the VWAP bands anchored to Solana’s all-time high (ATH). This suggests that the price is facing resistance at higher levels around $226.71 to $238.93 (upper VWAP deviations).
The price has shown:
A downtrend from its recent highs (~$264), forming lower highs and lower lows.
Short-term support at $203.51, which is also the 1st Support Level highlighted in the chart.
Using the VWAP Analysis (Anchored to ATH)
The VWAP (Volume-Weighted Average Price) anchored to Solana's ATH serves as a strong indicator of institutional participation and price efficiency:
Upper Resistance: The VWAP upper bands at $226.71 and $238.93 are acting as resistance zones where selling pressure increases.
Support Levels: The VWAP’s lower deviation bands align well with the 1st, 2nd, and 3rd support levels:
1st Key Support Level: $203.51
2nd Support: $192.56
3rd Support: $183.39
These levels represent possible pullback entries for buyers looking to accumulate at discounted prices.
Some Key Observations
Bearish Momentum: The current price is below the anchored VWAP midline ($226.71), indicating bearish momentum on the 4-hour timeframe.
Potential Entry Points at Key Support Levels:
A bounce at $203.51 (1st support) can trigger a potential short-term rebound.
Deeper entries around $192.56 and $183.39 (2nd and 3rd supports) align with lower VWAP deviations and previous consolidation zones.
Risk Management: A sustained breakdown below $183.39 could invalidate the bullish setup, leading to further downside.
Possible Trade Strategy using the Key Support Levels
Long Entry 1: Around $203.51 with a target near $226.71 (VWAP midline) and a stop-loss below $192.56.
Long Entry 2: Around $192.56–$183.39 for a higher-risk, reward setup targeting $215–$226.
Solana's price is facing downward pressure under the VWAP bands. Key support levels ($203.51, $192.56, and $183.39) present opportunities for long entries, especially if price action shows bullish signs (e.g., higher lows, bullish divergences on RSI) near these levels. Caution is warranted until Solana reclaims the VWAP midline at $226.71.
A 1-month look at the price action says that in the event of another crypto winter, and with consideration of the sustainability of Solana as a heavily supported digital asset with over $105 billion in market capitalization, price could again see scary low-price levels. Some of those key levels we hope to not see anytime soon are between $43-$101. If you are playing the "don't pass line," these may be the levels you consider holding out for if you are not in the position to trade the volatility.
The VWAP on the monthly chart above shows how we have closed above the top band on now look to retrace at least back to the top band giving even the most optimistic FOMO driven trader a spot to get in at a slight discount from right now. 9:07pm EST.
Thanks for reading!
Disclaimer:
This article, and the content provided by FNL, including but not limited to articles, podcasts, videos, live streams, and websites, is for informational purposes only and should NOT be regarded as financial, investment, or trading advice. Trading in cryptocurrency, futures, foreign currency, and options involves significant risk and is not suitable for all investors. Investors could lose more than their initial investment. Risk capital refers to funds that can be lost without endangering financial security or lifestyle. Only those with adequate risk capital should engage in trading. Historical performance is not indicative of future results.
Comentarios