Relief rally or rejection at $142?

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:

• SOL's Open Interest has fallen off a cliff since its mid-January highs. However, this is also due to the coin's price falling so dramatically as well. OI, measured by the number of coins, is relatively high, but we have to take that with a 'pinch of salt' because it now takes less $ to leverage 1 SOL (price is now substantially less than it was 8 weeks ago).
• Therefore, SOL's OI doesn't provide us with a strong trading signal here, but it is important to still be watching it.
• SOL's Funding Rate is flat at 0.00%, so there's no clear bias between Longs and Shorts.

SOL's Open Interest (by $):

Technical analysis

• SOL dipped below the major horizontal support of $120, but fortunately, it was quickly reclaimed.
• The RSI was in oversold territory, but it hadn't printed any bullish divergences. It now has, and that might be enough for the price to get a small local relief bounce.
• The local resistance level is likely in the zone of $138 to $142. So, if there was a small relief rally, we'd expect $138 to $142 to be a potential sticking point.
• Above $142, the major horizontal resistance is at $162.
• To the downside, if the $120 level is lost (and we think over the medium term, it can be lost), then $98 is the next major horizontal support.

• Next Support: $120 (then $98)
• Next Resistance: $138
• Direction: Neutral
• Upside Target: $138
• Downside Target: $98

Cryptonary's take

SOL could also potentially be set up for a small relief rally here in the immediate term. However, we'd expect $138 to $142 to be the sticking point.

We also wouldn't look too long for these bounces (potential bounces). However, we would be more inclined to short local highs, although BTC seems to be the better play in the immediate term.