SOL likely to retest $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.

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• SOL's Funding Rate has also fluctuated from slightly positive to slightly negative, showing indecision amongst traders.
• SOL's Open Interest (by number of coins) has interestingly spiked to new highs, showing that there's still appetite to trade SOL with leverage.

SOL's open interest (by number of coins):

Technical analysis

• SOL saw some relief from the major horizontal support of $120, however price has seemingly rejected into the local resistance level of $148.
• In the short term, price is likely to remain range-bound between $120 and $148.
• Beyond $148, the major horizontal resistance is at $162. We don't expect this area to be reached in the short term.
• If the $120 horizontal support is broken and we still believe this is a possibility over the coming weeks, then $98 is the next major horizontal support. If that level is reached, we'd strongly reassess at the time, but our thinking is that we'd be considering buys there.
• The RSI is in middle territory and it's up trending, however, the RSI is resting on top of its moving average. It'll need to use the moving average as support here. If not, the rice can drive lower.
• The RSI did also put in a hidden bearish divergence when price spiked into $148. This is when price makes a lower high and the oscillator makes a higher high. We've marked this out on the chart (yellow circles).

• Next Support: $120
• Next Resistance: $148
• Direction: Bearish
• Upside Target: $148
• Downside Target: $120

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Cryptonary's take

Whilst SOL did show some signs of life, and we did see that in some memes which had strong rebounds, SOL is still unable to reclaim some key levels. This is, however, the case with many coins.

For now, we expect SOL to be range bound between $120 and $148, however, we do expect a breakdown (of $120) to be more likely than a breakout to the upside. Therefore, we remain patient in the near-term, and if we're right, we'll reassess upon a break below $120 (again, assuming we're right).