1-Day Analysis:
Big Picture: Yesterday, Solana lost strength after testing one of the stronger resistances. As previously highlighted that Solana’s gain was mostly driven by short-coverings rather than substantial demand inflows, which were expected to fade quickly and were unsustainable in the short run. That is exactly what happened after testing the resistance, the price took a strong drop back into the supporting levels.
On the Upside the quicker trailing dynamic EMA’s are fast approaching towards the price. Solana will face resistance from these levels upon getting tested. The session’s initial hurdle will be at 21.25, with greater resistances present between 21.90 and 22.15. Surpassing this range enables the price to re-test the significant barrier that exists between 22.40 and 22.85 levels.
On the Downside Solana has returned to the 20.80 level of support. Price is taking partial supports in this zone, but if bulls fail to launch anything resilient above the marked resistances, this support will be vulnerable. If Solana falls below the 20.80 mark, it is expected to return to the levels of 20.25 to 19.65, which have been maintaining the price against major sell-offs. However, if they are repeatedly tested, they are likely to deteriorate and might be penetrated as-well.
