Market Direction

SOL gains momentum, resistance ahead

Published: Oct 1, 2024

SOL’s open interest is rising as prices approach the $162 resistance, indicating uncertainty among traders, with a potential breakout looming.

SOL's Open Interest has been increasing over the last two weeks whilst Funding Rates have flip-flopped between positive and negative. This indicates that traders have been unsure and tried to Short as prices have gone higher.

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SOL's open interest:

5. SOL futures open interest increasing with price, suggesting strong market confidence and potential for further price movement.

Technical analysis

A really clean breakout of the local downtrend fuelled a move higher, enabling the price to break out of the main downtrend line.
The price is now close to retesting the horizontal resistance of $162.
Price is approaching overbought territory, but it's possible there's more room left to run higher, particularly if the price can reclaim back above $162.
If the price were to pull back, we'd expect the zone between $140 and $150 to hold as support.
If the price can break out at $162, the next major horizontal level is $185.

6. Solana price breaking above descending trendline near $162, with bullish RSI suggesting further upward potential if resistance is cleared.

Cryptonary's take

Price is moving up into a crucial level here to retest the underside of the horizontal resistance at $162. This might create a short-term stumbling block for the price, but we expect the price to potentially just consolidate between $150 and $160 in the immediate term, with a major breakout of $162 to come after. The breakout of the major downtrend line is bullish over the medium term, and with the macro setup at play, we're extremely bullish over the medium and long-term.