Market Direction

SOL holds support at $220 zone

Published: Nov 26, 2024

SOL leads the pack with a solid reset above $220, while BTC and ETH test critical supports. Funding rates hint at stability across crypto majors as markets prepare for the next move. Let’s dive in.

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.

Like BTC and ETH, SOL's Open Interest is also very high despite its recent shallow pullback from the highs.
The Funding Rate is interesting. It has more meaningfully reset and is back close to the 0.01% level, indicating even positioning. Longs are not getting overly aggressive here.
SOL has a much healthier leverage setup than BTC and ETH.

SOL's funding rate (5min timeframe):

5. A chart displaying Solana (SOL) price movement relative to Open Interest-Weighted Funding Rate over a 2-day span.

Technical analysis

SOL was initially rejected from the prior all-time high of $260. This is the new major resistance.
The price has pulled back, and it's using the prior local resistance of $220 as new local support.
We expect the zone between $203 and $220 to be significant support, and we don't expect SOL to break below this support zone.
SOL has pulled back substantially from overbought territory, having been at 77 on the RSI. It's now at 55, which is a significant pullback and a really clean resetting.

6. Solana (SOL) daily price chart showing a pullback to support at 220, RSI trends, and resistance levels.

Next Support: $220
Next Resistance: $260
Direction: Neutral/Bullish
Upside Target: $260
Downside Target: $200

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Cryptonary's take

SOL looks like the best setup out of the majors (BTC, ETH, and SOL). It's had a reasonable pullback where the price is now sat on top of a major support zone, and the overbought indicators have also reset substantially. A really nice natural pullback within a larger uptrend.

We expect SOL to consolidate on top of/or in and around $220 before moving back up in the coming weeks. We're not looking to sell any Spot SOL anytime soon; we think SOL looks very positive here, even if there is a consolidation in the short term.