SOL-“Volatility to Continue”

1-Day Analysis:

Big Picture: The engagement between Solana’s important breakout supports and the major EMA-200 resistance caused the session to be extremely volatile. The previous session ended with a long-legged Doji, suggesting that neither side had a favorable conclusion and that indecision remains at these levels. The volatility can carry on until a breakthrough is observed.  

On the Upside Solana is re-testing the EMA-200 level. Solana has challenged this EMA three times in the previous four trading sessions, however immediate profit-taking happens whenever price approaches or tests this EMA. This EMA has not been exceeded by Solana in over a year. Stronghold above this EMA could increase Solana’s bullish perspective, allowing it to re-target recent highs.

On the Downside the breakout region was tried again. The levels reacted strongly, confirming the breakout and indicating that drops are drawing fresh interest. The session’s first support is around 21.30, but major support stays solid between 20.30 and 19.60. Historically, these levels have been important S/R levels for Solana. Holding them assists in maintaining the positive outlook.