SOL rockets to $72: Next stop $81?

But, OI is at yearly highs, and Funding is 0.03%, so Longs should be wary.

TLDR

• Solana (SOL) found support at $61 and surged to $72. Despite being overbought on major timeframes, the potential for further upside exists.
• Open Interest (OI) hits yearly highs at $1.06b, and Funding is at 0.03%, signalling potential overcrowding in Long positions and vulnerability to a squeeze.
• SOL bounced off $61 support and reclaimed the main uptrend, with new local support at $65 to $66. Overhead resistance at $81 could be the local top.
• SOL may be range-bound between $61 and $81, with overbought conditions on all timeframes.

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.

SOL 12hr

Technical analysis

• SOL has been able to bounce off the $61 support and reclaim the main uptrend. 
• New local support would be $65 to $66.
• The overhead horizontal resistance is at $81. We expect this may be the local top of the move. 
• The current move is overbought on all timeframes, particularly the 3D and Weekly timeframes. 
• SOL is very 50/50 here in terms of direction from a TA point of view. We would expect it to remain range-bound between $61 and $81.

Market mechanics

• Open Interest has kicked back to new yearly highs at $1.06b, with most of the positioning sat in Longs as we speak.
• The OI-Weighted Funding Rate was much higher 24 hours ago, and it has come down to around 0.03%; however, this remains very high and suggests that Longs are relatively overcrowded here and may be vulnerable to a squeeze. 

Cryptonary’s take

SOL has been one of the best performers, supported by several really positive airdrops for the community from Solana-based projects.

We see SOL being range-bound in the short-term between $61 and $81, and we do not rule out a leverage flush out of Longs that could pull price back 10-15%.

If SOL retests $61, we would look to DCA into that level.