1-Day Analysis:
Big Picture: Volume has been among the highest in the previous three sessions since August. This volume increase indicates that short-covering has been occurring near the support levels, and if bulls continue to maintain these levels, a short-term reversal to the upside is quite likely. However, the ongoing coverings could possibly be pre-emptive profit-taking and does not yet confirm anything significant for the bulls.
On the Upside the resistance level of 18.65 proved to be too strong for the bulls, but an inverted hammer formation on the daily time-frame is emerging, indicating that bulls may be commencing fresh purchasing on lower levels. This is a positive development in the near term, but for Solana to have any sustainable upside push, it must break over the 18.65 barrier. Breaking through this allows the price to move higher into the 19.10 level and maybe into the 19.65 to 20.30 levels..
On the Downside the prior intra-day supports failed to produce anything meaningful. However, when the price got close to the 17.60 support level, it provided some intraday protection. This support zone identified around 17.60 to 17.50 is critical for Solana to maintain in order to avoid any deeper pullbacks. Breaking below 17.50 is expected to expose the following supports around 16.95, 16.55, and 15.70.
