SOL-“Massive Short-Coverings Ongoing”

4-Hour Analysis:

Big Picture: Solana has been on a huge winning streak since testing the 8.15 support level. Previously, sellers initiated a hyper move to the downside without any reasonable pull-backs, creating a massive chance for buyers to capitalize on. Buyers are now doing the same and are in desperate need of a consolidation to keep this bullish advance within control while keeping indicators under balance. If this move continues at this rate, it may end up becoming a dead cat bounce due to weak base foundations. As a result, buyers must exercise risk management and be aggressive in profit-taking at strength.

 On the Upside Solana is now approaching the 12.40 level. This remains a crucial level for price to recapture in order to maintain this momentum. It would be ideal for Solana to retake and consolidate above the 12.40 level in order to re-energize itself. Any hyper movements over 12.40 may be swiftly sold off. However, above 12.40 the next resistance is at 12.75-12.95, followed by 13.50.

On the Downside another level of support has been added, and it is currently at 11.65. This level will now serve as initial support, followed by the 11.10-10.95 level. Both of these supports are now likely to keep the pullbacks in control. New entrants who have been waiting for a healthy push-back are likely to enter at these levels of support. However, Solana must hold into supports at 11.10-10.95 in order to prevent a deeper pullback.