SOL-“Watch Out for Short-Squeeze”

1-Day Analysis:Big Picture: The intra-day support level stood firm owing to the extremely oversold conditions on lower-time frames. Furthermore, sellers took full advantage of the dip to force some short-coverings, as seen by the volumes. Furthermore, another short-squeeze higher cannot be ruled out. Having said that, until Solana reclaims at least 20.30, selling pressure will stay heavy, and sellers will attempt to short any short-term strength higher.

On the Upside after breaking over the 18.15 level, the price rose into the next resistance zone of 18.65 to 19.10 levels. As of now, testing this zone has caused some intraday profit-taking, dragging the price down. However, for the session, this zone will serve as key resistance, and bulls will need to break through it in order to re-challenge the levels of 19.65 to 20.30.

On the Downside the levels of 18.15 and 17.95 are projected to provide some moderate intra-day support. Apart from that, the main support for the session is still present at the 17.60 level. This is a critical support level for Solana to maintain; otherwise, the downside is still vulnerable towards the 16.55 and 15.70 levels.