3-Day Analysis:
Big Picture: Following multiple failures to re-take 37.40, the sellers stepped in once more, causing a bloodbath on the charts. Solana is currently trading below its previous massive consolidation range. However, it is another important range in which long-term investors may find interest. This range extends between 18.20 and 11.85.
The Upside Solana can re-target the 19.80 level first, followed by 21.05. The gains will most likely be the result of aggressive short-covering rather than fresh buying interest. However, if the squeeze continues, the price may move further towards 24.10, followed by 25.80, which remains the re-test level.
On the Downside for the past few trading sessions, Solana has been in free fall. Furthermore, it is now trading within a massive support region, and with a large number of late shorts in the system, Solana may attempt to trap that liquidity in the opposite direction. As a result, risk management is strongly advised. Furthermore, the initial support is expected to be at 16.90, followed by 16.50. These are likely to be acceptable session supports. Below these, the next level of support is visible at 15.00.
