SOL – “Short-Coverings still Advised”

12-Hour Analysis:

Big Picture: Solana has deeply penetrated the crucial support levels. The first reaction was encouraging, but it was unable to create any follow-ups, resulting in another drop. Solana would need to hold this range or else the downside risk would stretch deeper to the June lows. Furthermore, this level has been effective for over 100 trading sessions; losing it will be a significant blow for the bulls.

On the Upside previous support levels are now resurfacing as resistance levels. The initial resistance is presently at 30.80. Following that, the next levels are 32, followed by 32.40. Solana will need to rise above these levels in order to call some aggressive short-coverings. Failure to do so would maintain the pressure and restrict the upside. If the bulls end up reversing the day’s losses, they will essentially target the EMA-100 level.

On the Downside selling pressure is now overwhelming important support levels of 29.98-28.90. Solana must maintain these levels to limit additional losses, as failure to do so will likely expose Sol back to the June lows, where it will see some good short-covering and maybe fresh buying.