Market Direction

Will SOL reclaim $180 resistance soon?

Published: Feb 24, 2025

Solana faces bearish pressure as it breaks support, with traders uncertain about direction. While a relief bounce is possible, overall sentiment remains weak as funding rates fluctuate and shorts dominate.

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:

SOL's funding rate has fluctuated between positive and negative. But mostly it's been negative, suggesting that Shorts have been more dominant.
SOL's Open Interest is at new highs (measured by a number of coins). However, this is partly due to there still being a lot of interest, and also the price is much lower ie, less $ needed to Long or Short 1 SOL.
Ultimately, OI is high, and we're seeing traders flip-flop meaning there's a lot of uncertainty around positioning. Not an attractive setup here.

SOL's funding rate:

5. Solana open interest-weighted funding rate data, highlighting price fluctuations and trader sentiment shifts over recent periods.

Technical analysis

SOL has just breached its horizontal support of $162, however, this support does extend to $158, so it's more of a zone of support.
Price has pulled back substantially and it's now only 10% above the main Yellow Buy/Support box, we outlined 6-8 weeks ago.
Interestingly, SOL's RSI is very close to being overbought, and it can put in a bullish divergence today (assuming the price closes a new low and the oscillator closes a higher low). This might be what's needed for SOL to get a small relief bounce.
In terms of horizontal resistance, the low $ 180s is likely to be that level.

6. Solana price chart showing breakdown, key support zones, RSI trend, and bearish movement with potential recovery areas.

Next Support: $145 (then $120)
Next Resistance: $180
Direction: Neutral/Bearish
Upside Target: $180
Downside Target: $120

Cryptonary's take

Overall, it's just not a great chart, even though a potential relief bounce is possible. We're seeing a cleanse in the SOL eco-system, or rather we're on the cusp of a cleanse after meme's crime season ($TRUMP, $MELANIA, $LIBRA etc).

In the short term, a relief bounce is possible, we're just not sure we'll play it, as the narrative around SOL right now isn't great. We still expect the Yellow Box to be retested in the upcoming weeks.