1-Day Analysis:
Big Picture: Solana has been trading in close proximity of the dynamic support levels. Price has seen some nice short-coverings up to this point, but sellers have kept bulls from making any significant advances higher. If buyers do not step up aggressively at current prices, Solana is likely to face pressure. Furthermore, the Relative Strength Index (RSI) indicator suggests a decline in momentum. While active resistances remain above, support levels are equally solid lower, putting the pair in a volatile scenario.
On the Upside Price was able to break over the 23.15 level, but it came into another wave of resistance between the 23.40 and 23.60 levels. These ranges have now emerged as Solana’s initial resistance levels. Above this level, the next set of resistances is at 23.80, followed by levels ranging from 24.05 to 24.15. Strength over these resistances may contribute to an increase in momentum; nevertheless, in order to become aggressively bullish again, Solana must establish a stronghold above the 25.50 mark.
On the Downside the dynamic support levels of 22.70 to 22.50 have held nicely and prevented the price from falling further. For Solana, recovering the EMA-200 was a significant milestone for the bulls, and they would now need to defend this level in order to maintain their favorable position. Solana losing this dynamic zone would extend its decline towards the 21.20 level. However, as long as the dynamic supports hold, the downside risk remains low.
