SOL breaks trendline, eyes next support

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 Funding has fluctuated a lot recently. This suggests huge indecision and low conviction amongst traders as to the next direction.
• SOL's Open Interest remains very high, suggesting that there is still appetite amongst traders to take on leverage.

SOL's funding rate:

Technical analysis

• SOL is at a really interesting level here, battling at the horizontal level of $148, with price currently falling below, but battling at the key horizontal level.
• To the upside, the major horizontal level is the $162 level.
• To the downside, the local support is at $135, and the major support is at $120.
• Price has broken below its local uptrend line, and since then, it has struggled for upside. We do expect a move into $136 to eventually be a landing spot for SOL, although we are watching the potential bull flag pattern, which we see a breakout to $150-$160 first. But again, we wouldn't be looking to bet on upside here.
• The RSI is back in middle territory and well below its moving average. This suggests a move higher is possible to retest the underside of that moving average.

• Next Support: $135
• Next Resistance: $162
• Direction: Neutral/Bearish
• Upside Target: $162
• Downside Target: $120

Cryptonary's take

There's the potential for a small move higher in the short term for SOL, but we expect it to pull back to $135 either first or after retesting $150. Beyond that, we do expect a further breakdown to $120, even if that takes more weeks.

For now, we remain out of the market, and we still hold the strong view that this is a relief rally, and that we'll get our entry prices over the coming 1-2 months. For now, we're still patient. If price gets to $150-$162, we may consider fresh Shorts for SOL, but we probably prefer BTC for a Short should it move into $98-99k.