SOL skyrockets 102% in two weeks: What's next?

TLDR

• SOL has surged 102% in just two weeks, smashing through resistance levels.
• We suggest accumulating SOL on meaningful pullbacks, especially if it retests levels below $37 or $32.
• Long-term investors with sub-$30 entry points can hold with confidence.
• Traders should consider profit-taking near $45 to $48 and re-accumulating below $38 in the medium term.

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.

Technical analysis

Following a monster move that has smashed through almost every horizontal resistance in its way, SOL has now approached the $48 - $50 horizontal resistance level/zone. Note: SOL is up 102% in two weeks, so at some point, a more meaningful pullback will likely occur. 

We believe that in the short-term, SOL’s horizontal resistance zone of $48 to $50 will act as resistance, and price may get a more meaningful pullback in the coming weeks. Immediately, we would look to the $37/$38 area as being a support with the next support at $32/$33. 

SOL 1D

RSI and funding rates

The RSI on the daily is extremely overbought at current levels. This is why we are exercising caution here on SOL - or at least, not adding new longs/buys. We would wait on a more meaningful pullback to add new longs/buys. 

The funding rate is what moved the price drastically yesterday evening. As SOL moved into the low $40s, the funding rate went deeply negative while open interest increased. This indicated that traders piled into shorts and paid a massive premium to be short. This led to a short squeeze, which saw SOL’s price move higher to liquidate the shorts and burst into the $47 area. 

Since yesterday, the funding rate and the open interest have been reset to more healthy levels. 

Cryptonary’s take

SOL has moved massively higher. We would look to accumulate more SOL on any meaningful pullbacks. If SOL can retest sub $37, we would look to DCA into this level, and we would look to DCA more aggressively if SOL were to pullback into the $32 area. 

Action

• If you’re a passive investor and your average entry price is sub $30, feel confident that you can likely continue to hold SOL for the long run. 
• If you’re more of a trader, the opportunity to profit-take around the $45 to $48 area could come to fruition, to then look to re-accumulate back beneath $38 in the medium term.