1-Day Analysis:
Big Picture: Following its vertical climb higher, Solana is beginning to build a consolidation range. This delay is being caused by indicators’ lack of space for any upward momentum. For price a few corrective rounds below could benefit the trend and enable price to re-energize before trying another round upward. Any further vertical ascent from here would result in a similar corrective cycle later on, as well as a short-term exhaustion.
On the Upside during consolidation price was able to channel higher. However, the initial resistance for the session is at 40.50, followed by 41.10 and 42.50. These are powerful resistance levels with the potential to cause significant intraday profit-taking. Meanwhile, gaining strength over 42.50 will allow price to channel towards 43.20 and perhaps 44.70, where another significant profit-taking event might occur.
On the Downside from the 39.80 level, Solana is gaining solid support. This is a good support line for the day, and if Solana is to head lower in this corrective cycle, it must break below this level. Only then will price test lower supports around 38.80 and 38.00, with potential for more decline. Furthermore, there is EMA protection between 38.80 and 38.00 levels, which adds to the supports.
