Solana eyes $240 but risks $183 drop

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.

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• 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):

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.

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

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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).