Big Picture: The massive short-coverings incident has persisted, and Solana is now witnessing panic short-coverings. Several previous reports highlighted that Solana was pointing towards such a situation to occur as price approached numerous support zones. Solana has now reversed roughly 50% from the lows and should now enter a consolidation period to avoid any hyper moves.
On the Upside Solana has overcome several obstacles in recent sessions. Moving forward, it will encounter initial resistance near the 11.65 level. Furthermore, the price is just underneath the 12.40 barrier, and if this level is regained in the next few trading sessions, Solana is likely to make another hyper-impulsive move. However, this would need a few confirmations prior to the shift. Above the 12.40 level, the next level of resistance is at 12.75-12.95.
On the Downside several intra-day supports have reappeared. Initial support has returned at 11.10-10.90 levels. In the coming sessions, Solana might become quite volatile between 12.40 and 9.90. However, if it consolidates above the intraday support, testing deeper supports may be postponed, and another higher move may occur. If these intra-day supports are breached, Solana is expected to re-test the 10.40 level, followed by 9.90.