Market Direction

SOL holding $162, next $145?

Published: Feb 18, 2025

Solana ($SOL) struggles to hold $162 as Bitcoin’s move looms large. With resistance at $188 and $203, can SOL reclaim higher levels or is $145 next? Let’s analyze the latest price action and key levels.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

SOL's Open Interest has gone from 24m SOL to now 32m SOL, as the price has gone from $200 down to $165.
SOL's Funding Rate has fluctuated between negative and positive.
Overall, this may need more reset, and this will likely be a time capitulation/reset rather than a price reset.

SOL's open interest:

5. Solanas open interest and price chart, depicting rising open interest alongside price fluctuations in the futures market.

Technical analysis

SOL broke out from its main downtrend line, but it couldn't reclaim the horizontal level of $203. The price was then rejected from there and the price immediately moved down to the next horizontal support at $165. This is a good example of how crucial key horizontal levels can be for price.
The price is now at the next horizontal support of $162.
Beneath the current support, we have $145 and $120 as the next two key levels to the downside.
The RSI on the Daily and on smaller timeframes is now in oversold territory, whilst it's also well below its moving average.
To the upside, $188 is likely to be the next local resistance.

6. Solanas price action showing critical support levels at 145 and 120, while RSI hovers in oversold territory.

Next Support: $162
Next Resistance: $188
Direction: Neutral
Upside Target: $188 (maybe $203)
Downside Target: $145

Cryptonary's take

If BTC doesn't break down here, then SOL might be due for a small bounce in the short term. We're at a key horizontal support, with the indicators being quite oversold. However, we wouldn't expect $188 to say $203 to be flipped. It's possible we get into that zone, but we don't expect the price to reclaim $203 and move higher from there in the short term.