SOL eyes $162 after pullback

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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• As the price has pulled back over the last few days, SOL's Open Interest has declined along with its Funding Rate (although it still remains positive).
• This indicates that the move lower was driven by Spot selling and Perp Longs closing out.

SOL mechanics:

Technical analysis

• SOL rejected just shy of the major horizontal resistance at $162 and has since pulled back.
• Price has now found support on top of the main downtrend line. It's a positive sign that the price will break out of a downtrend line and then pull back to retest that downtrend line as new support. This is known as a 'bump and run' pattern.
• On this price pullback, the RSI has also reset back to middle territory.
• The horizontal level of $143 we have just added in. This is potentially a local support for price.
• To the upside, $162 remains the key level to break above.

Cryptonary's take

Ultimately, SOL is still in a larger range between $120 and $162. We remain really constructive on SOL and the whole SOL eco-system, but we do not expect fireworks until there is a breakout above $162, although we think it could be on the near term horizon.

In the coming days, we expect price to be subdued and compressed in a tight range until Friday's labour market data. Upon that data might we get a more volatile move, and possibly to the upside as we expect the data to be positive.