SOL-“Short-Coverings Possible”

8-Hour Analysis:

Big Picture: As the prior important supports turned into resistance, a massive selling spree began. Solana is now facing heavy selling, and its daily RSI has moved into its lowest levels since mid-September 2023, indicating that buyers have remained on the sidelines and are watching the corrective cycle to play out. Similarly, higher time-frame indications have begun to cool down.  

On the Upside 82.15 is the sessions opening resistance followed by 83.40 and 85.00 levels. Solana’s lower time-frame price action remains bearish, and any immediate upside caused by short-covering would be viewed as a selling opportunity. In addition, volumes have begun to increase, indicating that fresh participants are taking advantage of opportunities for buying the drops.

On the Downside the initial intraday support level is at 79.50. Some partial responses have begun to occur around this level. However, the session’s main supports range from 77.80 to 76.95 levels. This significant supporting zone also has an 8-hourly EMA-250 level between these levels, which will bring additional support. As a result, substantial short-coverings may be observed if this zone is challenged.