1-Day Analysis:
Big Picture: The last two sessions started firmly but were unable to finish on a high note owing to price failure to breach the 20.30 level. As Solana approaches this resistance level, the price begins to weaken, indicating that the pressure persists around this level. On a daily time-frame, a hanging man pattern emerging, indicating a drop in momentum. Solana requires a strong breakout over 20.30 to 20.50 levels to negate the developing reversal pattern.
On the Upside for the first time in over ten sessions, Solana was able to close a candle above the 19.65 mark. The bulls have taken another move in the right way, but additional strength is necessary if the bulls are to expect more from this current corrective cycle. Initially, there is significant price congestion between the levels of 20.30 and 20.80. A number of resistances lie between this range, making it difficult for the price to obtain some sustained momentum. If Solana can build a foothold over 20.80, it is possible that the price will rise next towards 21.70 to 22.05 levels.
On the Downside Solana has been receiving support from the 19.85 level. This is the session’s primary level of assistance. Below this level, the next level of support for Solana is at 19.65. A freshly regained level that still has to be confirmed as a support. If this level establishes itself as a support, the upward potential will likely grow; but, if price fails to honor this level as support, Solana may fall back towards the 19.30 to 19.20 levels.
