SOL-“Lower Support Re-Tests Possible”

3-Day Analysis:

Big Picture: Solana has made a strong comeback after being in a bearish trend for the most of the previous year. Price exploded after breaking out of the converging triangle at the 13.50 level. It has been in a very strong trend for the previous several sessions and continues to show hints of strength. It has risen by a staggering 200% since hitting the demand zone in late December.

On the Upside Solana is now likely to face considerable opposition once more. It is expected to experience resistance around the 24.40 level initially. This is where the 3-Day EMA-50 can be found. Above this comes the next significant resistance zone, which is located between 25.50 and 27.50. This was the region breaking which caused the previous massive free fall. This region is now expected to operate as an equally strong resistance level. If bulls can get acceptance over this level, they will most likely seek 29.80 to 30.30 levels next.

On the Downside Solana has many supports ranging from 22.20 to 21.05. These intraday supports are expected to halt early profit-taking. To maintain this momentum, Solana would need to break over the 27.50 barrier. However, a break below the 21.05 mark might trigger a larger wave of profit-taking, exposing Solana to the 18.20 level and possibly lower. Furthermore, the majority of these downsides will be breakout-based support re-tests.