SOL-“Caution Remains Advised”

1-Day Analysis:

Big Picture: Solana continued to test the crucial EMA-200 resistance throughout the session. The candle almost closed on strength, but failed to close above the EMA-200 level. Buyers remain strong, however failure to break through the EMA could result in intra-day exhaustion leading to rounds of profit-taking, driving the price back down.

On the Upside the EMA-200 level continues to be the principal source of resistance. Breaking through this EMA would be a challenge for the bulls. This is expected to be an important hurdle for the session. Any short-term advance above the EMA will result in profit-taking, meanwhile a breakthrough would lead to sustainable upside initially towards 23.95 level and possibly further towards 25.40.On the Downside the initial support level remains at 21.30. Solana receives next support from the breakout-based zone between 20.30 and 19.60 levels. Both of these are good support levels, but pressure from the EMA-200 could lead the price towards the retest these levels before making another effort higher. Furthermore, the EMA-50 is rapidly catching up with the breakout-based supports, adding to the supportive zone.