1-Day Analysis:
Big Picture: After printing a double top formation within the consolidation band, sellers gained the lead once more and simply challenged and successfully broke past the dynamic supports, resulting in a significant intra-session drop lower. Solana had lately initiated a Golden-Cross formation, which is now in danger of failing and being labelled a fake-out. Solana will continue to face pressure as long as it remains below the dynamic thresholds.
On the Upside the previous support levels are to flip as strong resistances. Both the horizontal and dynamic levels between 22.40 and 22.85 will be difficult for the bulls to recapture. This effort will be significantly more challenging for bulls who have just been cornered. However, a few consolidation sessions here might help bulls get back the lost levels.
On the Downside Solana is expected to see initial support between 21.40 to 21.20 levels. Moreover, If it fails to recapture the dynamic levels above, it will be continuously exposed towards the support levels of 20.25 to 19.65. These supports were tested yesterday and effectively prevented the severe selling, showing that these supports are strong and will provide substantial price protection.
