Bears take aim as SOL weakens further

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.

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• SOL's Open Interest remains quite high considering the approximate 20% pullback we've seen in price.
• SOL's Funding Rate is negative at -0.01% indicating that there are more Shorts than Longs, and this might open the door for a potential Short-squeeze, although it would unlikely be of huge magnitude.

SOL's Open Interest (by USD value):

Technical analysis

• After price broke down from the main uptrend line and it couldn't find support at $162, price revisited $150.
• SOL put in a small bounce at $150, which saw a bearish retest - a move up into the underside of the horizontal resistance of $162, which then rejected.
• Price has then put in a small bounce from $144 which we're now using as the local support, but upside looks capped with $153 now being a local horizontal resistance.
• The key level for price to reclaim to the upside is the horizontal line at $162. Above that bullish, below it, bearish.
• To the downside, if price loses the $144 level, then $130 is likely next, although it might take some days/a week to move down to $130.
• One positive takeaway is that the RSI has meaningfully reset now, and it is now close to oversold territory.

• Next Support: $144
• Next Resistance: $153
• Direction: Neutral/Bearish
• Upside Target: $162
• Downside Target: $120

Cryptonary's take

SOL has pulled back from the $180 highs and price is now in a strong support area between $144 and $153. We'd expect price to chop around here for a few days, maybe even a week, although we do expect the next move to be a continuation lower, even if there is a small move higher first (to say $153), before breaking lower to $120 to $130.

For now, we're not looking to act. However, if price pulls back to the $120 to $130 area, and we expect it can do in the medium term, then we'll look to begin lightly allocating (buying SOL) for the long-term, so with a view to holding the position for 12 months.

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