However, it is still well below the excessive highs seen in mid-December.
We'd expect a further decrease in OI over the coming month or two, However the $JUP airdrop at the end of January may keep OI high.
Will need to keep watching this. Funding is flat, though, which is positive - neither Longs nor Shorts getting out of hand, which is good.
Technical analysis
- SOL is in a really key range here. We previously outlined the Purple box as a liquidity range. Price will likely be sticky to the area of this box, which it has proven to be.
- Yesterday, SOL rejected into the local downtrend line. If price breaks above this downtrend line, we can expect $117.
- To the downside, price will need to use the uptrend line as support. If it can't then the $77 - $81 range will need to hold as support.
- The positive news is that the RSI has reset majorly on the 12hr and the 1D timeframes and is even beginning to reset on the 3D and the Weekly timeframes, although still very close to overbought.
Cryptonary's take
This could go either way here.
Therefore, the BTC ETF inflows/outflows, etc, over the next few days may really decide general risk sentiment and, therefore, attitude over the coming weeks/month.
Essentially, we will need to see a move away from the Purple box. Whichever direction this is, it will set the direction of a trend continuation.
Let's wait and see. We remain patient on this but are watching vigilantly.
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