SOL breakout holds, but bearish signals build

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 (by number of coins) has spiked higher again, suggesting leverage traders are chasing this move higher.
• This is also reflected in the Funding Rate moving from negative to positive (Longs chasing in), although Funding has cooled off again in the last 12 hours.

SOL's open interest (by number of coins):

Technical analysis

• SOL has broken out of its local downtrend, and price has also comfortably closed above the key $120 horizontal resistance.
• Price is currently at a very local horizontal resistance here at $134. However, the main horizontal resistance is higher up at $148.
• The RSI has also broken out of its downtrend line with the RSI also above it's moving average. But, a hidden bearish divergence is now forming (a lower high in price and a higher high on the oscillator).
• To the downside, $120 is the horizontal support, with $98 the major horizontal support still.

• Next Support: $120
• Next Resistance: $148
• Direction: Neutral
• Upside Target: $148
• Downside Target: $120

Cryptonary's take

Price has broken out, and SOL may have completed most of this leg higher, but a push to $148 is still possible. There are some positives for SOL that suggest this move higher can continue, but there also some suggestions that a good portion of the move may have happened already, although we wouldn't be surprised to also see price continue on to $148. This is tricky to call here.

We're still of the view that we're in the midst of a relief rally and that price can test lower again over the coming weeks and months, and therefore we'll be looking to accumulate longer-term Spot bags of SOL between $81 and $112. Patience until then.