Market Direction

Solana consolidates as market awaits key breakout

Published: Oct 7, 2024

SOL’s price stays in a tight range between $143 and $162. A move above $162 could lead to a bullish run. Will SOL push higher soon?

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.

As the price increased to $160, Open Interest increased considerably as Funding increased. But, this wasn't followed by a Spot bid, which led to an over 20% decrease in OI as late Longs were flushed out.

SOL mechanics:

5. Solana price action with funding rates, open interest, and cumulative volume delta shown for analysis.

Technical analysis

SOL is still in its range between $120/$131 support to $162 resistance.
However, SOL is now back above its main downtrend line and above the local horizontal resistance of $143.
To the upside, the local resistance is $162, and the more major resistance is $185.
To the downside, we expect $120 to $131 to continue to act as a strong support zone for price.
The RSI is similar to BTC and ETH's, back in middle territory but beneath its Moving Average.

6. Solana price chart with key support resistance zones and trend lines, alongside an RSI momentum indicator.

Next few days prediction: Neutral ($137 to $162)
Next 7 days prediction: Bullish
Next 7 days price target: $162

Cryptonary's take

In all fairness, SOL itself has been quite boring recently, yet the ecosystem continues to see great gains, particularly in the Meme space. Our expectation is that over the coming days and weeks, SOL might remain range-bound, but we expect once SOL breaks out of $162, that'll be the bullish reversal that'll send the price back to $200.

We're expecting further chop over the coming days, but in this higher range, between $143 and $162. If the Inflation data is positive, that might be enough to see SOL breakout of $162, but we'd at least a retest of $162 on positive Inflation data.