1-Day Analysis:
Big Picture: After closing 22nd August’s session with a lookalike of a hammer formation, bulls remained active yesterday and remained strong throughout the session. Price showed a significant comeback yesterday, but despite such a strong session, volumes only rose by a few margins, indicating that the surge was mostly driven by short-coverings rather than any fresh demand inflows. This remains a cause for concern for the bulls.
On the Upside price broke through a number of resistances in yesterday’s session and is currently targeting the resistance level of 21.90. If price manages to break through this level, a push higher into 22.15 is on the cards. This is another significant intraday barrier that may trigger some aggressive profit-taking. However, between the 22.40 and 22.85 levels, Solana has another key hurdles that the bulls must overcome in order to offset the ongoing selling pressure.
On the Downside multiple intra-day session supports have been re-introduced. The session’s beginning support is set at 21.65 level. If price maintains this level, the chances of breaking through 21.90 increase significantly. Below 21.65, the next rounds of support are at 21.25 and 20.80. These supports are expected to provide partial hurdles for the sellers.
