Market Direction

Solana eyes $240 but risks $183 drop

Published: Feb 4, 2025

Solana remains in a downtrend, struggling below $222 resistance. Open interest declined, and funding rates are fluctuating. SOL must hold $200 support to prevent further downside towards $180.

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 kicked up but then pulled right back down again as the Sunday/Monday liquidation event unfolded. Ultimately, the OI has remained in a downtrend since the start of the year.
Like ETH, SOL's Funding Rate fluctuates from positive to negative, indicating indecision amongst traders who are likely also being whip-sawed by the price action.

SOL's open interest (by number of coins): 5. Solana futures open interest chart with SOL price fluctuations, showing leverage trends and market reaction to recent price movements.

5. Solana futures open interest chart with SOL price fluctuations, showing leverage trends and market reaction to recent price movements.

Technical analysis

SOL did really well in bouncing aggressively and recovering at the $203 horizontal level.
Today, the price has moved lower and bounced off $203 as new support.
For now, the price remains below the horizontal level of $222. A reclaim of that level would be the bullish reversal we'd be looking for.
If the price breaks back below $200, the key level to then hold will be $182.
The RSI is in the middle territory, but it's currently well below its moving average, which may mean the price can rebound higher in the short term.

6. Solana price chart with key horizontal support and resistance levels, trendlines, and RSI indicators tracking market sentiment.

Next Support: $203
Next Resistance: $222
Direction: Bearish/Neutral
Upside Target $240
Downside Target: $183

Stay updated on Solana's price prediction. Explore our full analysis for the latest market insights.

Cryptonary's take

SOL has broken down into the lower end of the major range (between $200 and $260). Ultimately, SOL needs to remain above $200, but we wouldn't rule out a revisit to $180 in the short term. To get the bullish reversal, we'd need to see a breakout of the downtrend line and a breakout of the horizontal resistance of $220. Until we see that, we'd remain patient, and in the immediate term, we're open to seeing some more downside (possibly $180).