SOL fights key $120 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.

---

SOL:

• SOL's Open Interest has come down in USD terms but not so much in coin terms. This doesn't give us a clear trading signal.
• SOL's funding rate has been mostly negative over the last few days, showing traders are trying to Shorten these small bounces. This will likely set up a short squeeze at some point in the medium term. We wouldn't be looking for Shorts in SOL anytime soon - although that doesn't mean we're looking for Longs either.

SOL's funding rate:

Technical analysis:

• SOL is currently fighting at the main horizontal support of $120 which has been the major support for SOL throughout the last year.
• If the $120 horizontal support is lost, and we expect it will in the medium term, then the next key horizontal level is at $98.
• The RSI is out of oversold territory, and it put in a bullish divergence which is likely what has helped price move up very slightly.
• To the upside, the horizontal resistances are at $136 and $162, although we don't see $162 being retested anytime soon.

• Next Support: $120
• Next Resistance: $136
• Direction: Neutral/Bearish
• Upside Target: $136
• Downside Target: $98

Cryptonary's take:

SOL has moved into the mid-$130's and rejected there. It's currently battling at the $120 horizontal support, and the price will need to hold that level, or it risks moving down to $98. $98 is where we'd start looking to bid. If we're right, then this might take more time to play out, potentially weeks.

However, $98 seems like it would be good, at least for a meaningful bounce play, if not long-term buys. For now, we'll remain patient, and we'll bid SOL if it moves down to $98. We expect in the short-term that the price just grinds between $120 and $136 before it breaks down to $98. This'll likely come on BTC's next big breakdown.