SOL faces pressure at key support zone

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 is down trending, suggesting a less frothy leverage market.
• SOL's Funding Rate also remains positive but not too elevated.
• Ultimately, from a leverage market perspective, SOL looks positive here, although a flush out would likely see a significant resetting, and longer-term, this may be healthy for SOL.

SOL's Open Interest (by USD value):

Technical analysis

• SOL remains in its downtrend channel, with price having rejected the top border of the channel on several occasions.
• Price is currently finding support at its main horizontal support of $144. If this level is broken, then the next supports are at $135 and $120. We expect this zone (between $120 and $135) to be a strong support for price.
• To the upside, the key levels are $165 and then $185. If there is a breakout in the short term (maybe on war resolution), then we'd expect a move up to $165.
• The RSI is in middle territory, and it is battling at its moving average, which may prove to be resistance.

• Next Support: $144
• Next Resistance: $165
• Direction: Bearish
• Upside Target: $165
• Downside Target: $135

Cryptonary's take

SOL is in a precarious position here, particularly with the uncertainty around the geopolitical picture, which we expect shouldn't last long. However, this uncertainty may result in a short-term breakdown of the price in the coming days/weeks, meaning a test of $135 is possible in that time.

Should SOL breakdown, we would be aggressive buyers of SOL between $100 and $120, whilst we'd be slowly and progressively buying (in lighter sizes) should SOL visit the $120 to $135 range.