4-Hour Analysis:
Big Picture: After breaching the range low support levels, Solana continues to sell down aggressively. Overall, it could yet continue down for a re-test of firmer supports, but an intra-day correction is not out of the question given that lower-time frame indications are already hitting extremely oversold conditions. Short-coverings might cause price spikes, so fresh sellers should proceed with caution.
On the Upside short-coverings might provide some relief to Solana’s selling pressure. Possible short-coverings could raise the price to the 18.80 level, followed by the 19.20 level. Intra-day resistances are expected to pose a challenge for Solana at this point. Additional squeezes are unlikely unless Solana hits consecutive closings above the 19.20 mark. If this occurs, the price might rise into the 19.50 to 19.70 range.
On the Downside the price is still holding to the intraday support level of 18.50. Maintaining this support level over the next few hours may trigger an intraday price reversal driven by short-covering. If selling persists and the price loses this support, Solana is expected to go deeper towards the 17.90 level, followed by the 17.50 to 17.40 range. This is where it might see significant rounds of short-coverings with potential fresh-buying.
