Market Direction

Solana price targets $263 – Can it break?

Published: Jan 28, 2025

Solana is consolidating between $220 support and $263 resistance as traders await a breakout. With funding rates flipping and open interest dropping, can SOL break higher? Let’s analyze the market and key levels to watch.

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.

Interestingly, SOL's Open Interest (by number of coins) is down substantially but this is potentially due to the price now being much higher.
SOL's Funding Rate has been very choppy, flipping from positive to negative. This has likely been due to traders playing the range between $220 and $260.

SOL's funding rate: 5. Solana funding rate chart with OI-weighted data and price trends, highlighting market sentiment shifts.

Technical analysis

SOL formed a pennant pattern but into the horizontal resistance of $263.
Unfortunately, the price was rejected from the pennant and broke down to the horizontal level of $220, where bids came in and the price bounced. These key horizontal levels we have marked are really solid and tend to work regularly.
Like many of the coins, the price is now in the middle of a larger range, between the $220 horizontal support and the $263 horizontal resistance.
The RSI is in the middle territory, but it's below its moving average, although again, this isn't a major concern for us currently.

6. Solana price chart with key resistance levels, RSI trends, and a potential support zone in yellow.

Next Support: $220
Next Resistance: $263
Direction: Neutral
Upside Target: $260
Downside Target: $200

Stay updated on Solana price prediction—explore our full analysis for the latest market insights.

Cryptonary's take

Again, like BTC and ETH, SOL is in its larger range now, and we'll be waiting for the price to show us the way. However, we will also be a bit more practical with SOL in that if SOL pulls back into the $200 to $220 zone (particularly if it's around $200), we'll add to our long-term Spot positions.

In the meantime, we'll remain patient and let price action show us the way. For now, we still have a short-term bearish tilt amongst the Majors, but let's stress the short-term point.