#CelebratingNewYearOnGateSquare Solana ($SOL) is currently trading in a consolidation phase after a strong impulsive rally, holding above a key support zone on the daily timeframe. Market structure remains bullish overall, as higher highs and higher lows are still intact. Buyers continue defending dips, suggesting underlying demand despite short-term volatility.

On the 4-hour chart, SOL is forming a tightening range between near-term resistance and rising support. This compression often signals that a breakout move is approaching. Volume has cooled slightly during consolidation, which is typical before expansion. Momentum indicators are neutral but leaning bullish while price stays above the most recent higher low.

Bullish Scenario:
If SOL breaks and closes above the immediate resistance level with strong volume confirmation, it could trigger continuation toward the next liquidity zone and prior swing high. A successful breakout would likely attract momentum traders and short-term buyers. In this case, pullbacks toward the breakout area may offer better risk-to-reward entries rather than chasing extended candles.

Bearish Scenario:
Failure to hold current support may shift short-term sentiment bearish. A breakdown below the higher-low structure could open the door for a deeper retracement toward the next daily demand zone. Increased selling volume would confirm weakness and invalidate the short-term bullish setup.$SOL