1-Day Analysis:
Big Picture: Yesterday, the sellers made a significant breakthrough as the price closed marginally below the EMA-200. This, however, is not a welcoming indication for the bulls, however it might potentially be a deceptive move. If price fails to pull a continuation below the EMA level in the next hours, a swift wave of short-covering cannot be ruled out. Solana will continue to get support from the zone below, so late sellers must exercise caution.
On the Upside Price might push useful short-coverings, dragging Solana back towards the resistances above. If short-covering occurs, the price may recover towards the 23.15 level, followed by 23.80 and 24.05. While a stronghold over 24.05 will be necessary to force even more stronger coverings and fresh buying, causing the price to move further higher.
On the Downside both dynamic levels are still valid. Price has showed some weakening, but it will still find support between the EMA-200 and EMA-50 levels. These levels are now at 22.70 and 22.45, respectively. A clear break down below these dynamic supports is required to broaden Solana’s downside. Unless and until that occurs, the downside is restricted, and the existing supports may compel aggressive short-covering.
