SOL stalls after trendline breakdown

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.

---

• SOL's Open Interest has pulled back slightly over the last few days following the price pullback, with Funding Rates holding close to neutral, but whipsawing.
• Ultimately, this shows indecision amongst traders.

SOL's Open Interest (by USD value):

Technical analysis

• SOL broke below its horizontal support of $162 as we expected it would do, following the loss of its main uptrend line.
• Price is now holding at the prior highs at the $150 level, whilst there is also a main horizontal support just below $150 and $147.
• If price were to lose to the horizontal level at $147, then price would likely pull back to the $120 to $130 zone. If this were to happen, we would consider buying SOL for the long run in that range ($120 to $130).
• It's possible in the immediate term that SOL bounces and retests $162 as a new horizontal resistance. We expect the price to reject there in the short term, and pull back further.
• If price can break above $162, though (as we said, we don't expect it to), then $180 is the next horizontal resistance.
• The RSI has meaningfully reset on this pullback, and it's now in middle territory, so not overbought or oversold.

• Next Support: $147
• Next Resistance: $162
• Direction: Neutral/Bearish
• Upside Target: $180
• Downside Target: $130

Cryptonary's take

SOL has pulled back more substantially, as we expected it would, following the breakdown of the main uptrend line. SOL is now in a critical zone between $147 and $162, where the price will need to show strength if a general uptrend is to be continued. Our expectation is that the price may chop for a few days (potentially even retesting the underside of the horizontal resistance at $162) before breaking below the horizontal support of $147 and moving back down to $130.

In terms of our positioning, we'll remain sat in USD for now, although a retest of $120 to $130 would likely encourage us to begin lightly stepping back in (buying). But for now, we're patient and we see little reason needed to rush in here.