SOL holds support at $220 zone

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• 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):

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.

• 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.