1-Day Analysis:
Big Picture: Solana’s pressure continued to increase, resulting in a breach of important support levels that had been held for almost two weeks. However, bulls have a ray of hope that if they can retake this level, a potential divergence would occur, dragging price back higher towards higher resistances. If the bulls fail the retest, sellers may seize the opportunity and pull price towards their goal of retesting the 25% Fibonachhi levels.
On the Upside the prior support level of 20.30 to 19.65 is now establishing as resistance. This region was lost over the weekend and will now be one of the session’s key levels. It will be critical for the bulls to regain this level in order to avoid any severe sell-offs. If buyers can re-establish a foothold above these levels by overcoming the horizontal and dynamic barriers, Solana’s upswing will resume towards the 21.90 to 22.05 levels.
On the Downside despite losing key supports, sellers have not begun a massive sell-off. This is good for the bulls, however the sellers are showing indications of exhaustion. For the time being, the opportunity has not been capitalized. However, if buyers fail to step up once again, sellers will have a red carpet invitation to pull the price lower towards 18.80, followed by 17.60, with additional downside potential into the channeling support and the fibonachhi level.
