SOL-“Short-Coverings Advised”

1-Day Analysis:

Big Picture: Solana failed to reclaim the crucial level of 12.40 and is now under selling pressure. Solana’s price structure is now beyond the third phase of the drop on higher timeframes. Furthermore, recent price action has failed to show any substantial corrective cycle and has been steadily dragging lower towards key supports. Such a scenario raises concerns on the health of ongoing downside. Sellers should closely watch risk management at these levels, as any return of demand can swiftly pull prices above.

On the Upside 11.85 is now established as the initial resistance level. This level held prices for a while, but it has already been lost and will serve as resistance. Above here, the next level of resistance is at 11.95, followed by 12.40. To reverse this selling pressure, the price must gain acceptance and strength over 12.40.

On the Downside Solana is about to put the 11.00 support levels to the test. There are several supports detected between 11.00 and 9.20 levels that might trigger a quick and surprise short-coverings. Furthermore, as prices fall, demand is likely to increase. As a result, aggressively shorting this pair remains a dangerous position that should be at the very least be accompanied by aggressive risk management.