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Market Direction

SOL has lost its uptrend, will this lead to more downside?

Updated: Jul 25, 2024
Published: Dec 18, 2023
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SOL’s mechanics have reset substantially, with Funding Rates back to 0.01%. 

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The Open Interest is still high at $800m but has pulled back from $1.1b. 

However, the TA suggests we may see further downside. 

Technical analysis

  • The uptrend has been lost, but SOL has done this before and has then been able to recover it quickly.
  • There are local supports at $65 and $61, with the more major horizontal support at $56.
  • $77 to $81 is a main horizontal resistance range.
  • The RSI has reset on the 12hr and the 1D; however, the 3D and the Weekly remain overbought, particularly the Weekly. This likely needs to see a further reset.
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Cryptonary's take

The market has moved really well over the past two months, particularly SOL. 

A more substantial pullback would reset some of the larger timeframes, which would be healthy for SOL mid and long-term. 

We may see SOL in the coming month or two back at $61, if not $56. If this happens, it will then hammer out $56 to $61 as a new long-term support range. 

If SOL reaches $61, we would add light DCA orders, with these orders becoming more aggressive in USD size down to $52 if we get a pullback that's further than expected.



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