SOL stages a comeback, sets sights on $61

SOL is holding a local support of $59 but butting into the local resistance of $61.

Pivotal point here for SOL. A breakout of $61 could bring $69 and then $80 into view.

TLDR

• SOL bounces back above the key uptrend line and $59 support.
• It faces immediate resistance at $61, but a break out to $69 and then $80 is in sight.
• Long futures premium indicates bullish sentiment, but this needs to be confirmed.
• SOL can still pull back from here and retest $56.

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 4hr

Technical analysis

• SOL has unexpectedly recovered its uptrend line and is now above the local support of $59.
• SOL is currently finding resistance at the local horizontal level of $61. A breakout of $61 would bring $69 and then $80 into target.
• SOL has a convergence of support just beneath the current price - the local horizontal support of $59, along with the uptrend line. If these levels are lost, $56.40 would be the next horizontal support.
• The RSI on all timeframes has reset except the 3D and the Weekly. The 3D has also put in a bearish divergence. On the larger timeframes (3D and Weekly) SOL looks as if it needs a slight pullback. 

Market mechanics

• SOL’s Open Interest has popped higher again to $840m, just shy of the yearly highs that were put in 2 weeks ago at $933m. 
• The OI-Weighted Funding Rate has risen from approximately 0.008% yesterday to 0.012% today, indicating that participants are paying a premium to be Long rather than Shorts. This isn’t too out of balance here, but it’s something we should keep an eye on going forward in case this ramps up further. 

Cryptonary’s take

Again, SOL has performed very well over the past few days to reclaim some key levels - the uptrend line and the local support of $59. 

For SOL to get a more significant upside here, we need to see price break above $61. If that happens, then $69 and $80 would be the two upside targets. 

If price breaks beneath $59 and then $56, we would have a downside target of $48. 

SOL, like Bitcoin, is very difficult to call here. If we had to call a direction, we would predict that SOL would pull back from here and retest $56. A breakout of $61 would invalidate this, of course. 

We’re currently not looking to trade. However, we’re looking to DCA into SOL sub $50 at $48.