Market Direction

SOL tests $220 key support

Published: Nov 29, 2024

Solana ($SOL) consolidates between $220 support and $260 resistance. Open interest declines slightly while RSI resets, hinting at a potential bullish breakout soon.

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SOL's Open Interest is down slightly from the highs, indicating that some leverage was flushed out on the pullback to $220.
SOL's Funding Rate is positive, but it isn't elevated at just 0.0158%. This indicates that positioning is tilted Long, but it's close in balance between Longs and Shorts.

SOL funding rate:

5. Solana funding rate and price chart showing steady open interest levels with balanced long and short positions.

Technical analysis

We're looking at this chart from a zoomed-out perspective, but we remain on the daily timeframes.
SOL moved into its all-time highs at $260, rejected, and pulled back to the prior horizontal resistance, now turning new support at $220.
SOL was able to bounce well at $220, with this pullback to $220 really resetting the RSI, now being significantly below overbought territory.
We expect the $210 to $220 area to act as strong support for SOL in the short term.
To the upside, the main horizontal resistance is the prior all-time high, $260.

6. Solana price chart with key resistance at 260 and support levels near 220, showing strong RSI recovery.

Next Support: $220
Next Resistance: $260
Direction: Neutral/Bullish
Upside Target: $260
Downside Target: $220

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Cryptonary's take

SOL still looks really strong here. We're expecting a period of consolidation, similar to BTC, and we believe we're currently in that. We expect that the price will just be range-bound between $220 and $260 for the next week before eventually breaking out to the upside again.