Solana eyes $255 after RSI reset

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• SOL's Open Interest is at record highs in USD value, and it's at cycle highs measured by coins (this excludes when SOL was sub $20, as the coin was so much cheaper, so less money was needed to take on more leverage, measured by coins).
• SOL's funding rate has reset substantially, and it's now back to normal levels. A 10% price pull-down has flushed out some of the over-levered Longs.

SOL funding rate:

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Technical analysis

• SOL is forming a bullish pennant above the prior horizontal resistance, which is now acting as new support ($203).
• The RSI has also pulled back from overbought territory; although it still remains quite high, it is now finding support on top of its moving average.
• If the $203 horizontal support is lost, we'd expect the $185 to $190 to be the next major level of support, and we'd be extremely surprised if the price fell below this level.
• On the upside, the resistances are at $220, and then the prior cycle's all-time high is $255.

• Next Support: $203
• Next Resistance: $220
• Direction: Bullish
• Upside Target: $255
• Downside Target: $185 - $190

Cryptonary's take

SOL looks to be one of the better charts here. It's holding above key horizontal support for now, and it has built some support above that level ($203). Price is also in the formation of a bullish pennant, which has a bias to break to the upside.

Meanwhile, the indicators that were overbought have been more meaningfully reset. If BTC doesn't get a more meaningful pullback and it can maintain its current level, SOL is potentially set up here to break out to the upside and run to the prior cycle's highs ($255). Let's see what the coming days give us.