SOL-“Short-Coverings Ongoing”

4-Hour Analysis:

Big Picture: Sellers attempted to breach below the 19.00 barrier twice, but both times it was met with strong demand. This has most certainly encouraged aggressive sellers to exercise caution, since no more price breakdowns were attempted. This paved the path for intra-day profit-taking, which gained intensity when Solana breached the prior range low levels.

On the Upside price initially tried the 20.80 resistance level after reclaiming the previous range highs, which was also surpassed, leading to higher levels in the area of 21.20 to 21.30. These levels have effectively halted the current short-covering. For Solana, these levels continue to be important resistance limiting further short-coverings aiming for 21.50, 21.80, and maybe even 22.15.

On the Downside the prior range lows levels will most likely be re-tested as supports. Flipping these levels back into support will benefit buyers, even if only temporarily. However, losing this zone will weaken and derail the present momentum, causing the price to fall towards lower supports.