SOL has to bounce NOW! Otherwise, $65 is on the cards

Open Interest is down considerably from the top a month ago, while Funding Rates are also flat. 

A healthy leverage market is positive for price, but it doesn't mean price won't go down; it just means the market isn't vulnerable to a leverage flush out. 

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

• SOL now has an interesting chart that seems to have respected key levels. If we chart right, price action should respect it.
• Price tried to break out of the downtrend line but found a strong resistance into the top of the liquidity box (purple box).
• The current price is around $87. We can see that price has found bids/buyers around this area and bounced. But again, the more times this level is tested, the weaker it becomes.
• The main horizontal support level is a zone between $77 to $81. It's pivotal that price bounces from this area; if it doesn't, expect $65. Of course, $65 would be a big buying opportunity if we get there.
• The bullish reversal for SOL would be to see price break out of the red downtrend line and for the closure of a significant timeframe candle above this downtrend line.

Cryptonary's take

Macro-wise, we are bearish on the market over the next couple of months. 

Our analyst who re-bought SOL at $95 is still holding and will be happy to be proven wrong if price goes higher. 

We are waiting to see if we are right and if the market goes lower. If it does, we’d be buyers. But, we are constantly analysing prices based on where we think we are on the macro timeframe. 

As you know, there will be some macro issues in March. So that's when we think we want to be buyers if we are right on the macro front, and we'll keep judging the price of SOL in the run-up to March. 

If this happens and we get a meaningful price breakdown in the next two weeks, we will add more exposure. But we will certainly wait for at least sub $79 before buying. 

We'll keep assessing price changes against the macro timeline and gradually layer buys of SOL against this timeframe of price and time over the coming months.