Solana (SOL) currently trading at $113.69 has rebounded strongly from the $100 support zone, gaining over 10% and moving above key levels $105 and $112. The rally mirrors broader market optimism seen in BTC and ETH.
Trading Volume has also increased by around 2% at $5.68 billion in the last 24 hours. Will the price break upper trendline resistance at $123.45?
Solana Price Analysis
Solana is continuously falling from late January, forming a Falling Wedge pattern. The price has been trading within this channel for the past 2 months. The SOL price has fallen from $295 in January to current level at $113.69, representing a 61.65% drop. SOL struggles to maintain a support at $110 as continued selling persists.
The Pivot Points Standard shows R1 at $165.69, suggesting significant resistance overhead. Meanwhile, the current price is hovering above S1 at $97.69, which could serve as the next major support level if the downtrend continues.
RSI is at 43.4 just below the neutral line at 50. The RSI has been fluctuating between 30-40 for several weeks, showing potential stabilization but no significant bullish divergence yet.
SOL has to breakout from the channel either up or down for any significant move to occur. The price has recently approached the lower trendline of this channel around $103, suggesting an important support test.
SOL Price Targets
If a strong breakout above $120 occurs, we could see price reach an immediate target of $139.56 and if the buying accelerates it could reach $165 next.
Failure to break it may result in short term consolidation or a retest of support zones at $112 and $107. If a breakdown below the lower trendline at $97.68 occurs we could see it reach the S2 level at $70.85.
ETF Funding Rate and Open Interest Data
Coinglass data shows significant development in the derivatives market. Funding rates of Solana have been dropped among major exchanges for the past 48 hours, with an average funding rate of -0.0054% for prominent exchanges like Binance and BitMEX.
Open Interest (OI) surged in a phenomenal 12.09% in a week to reach $4.45 billion, one of its highest levels for months. This suggests fresh traders opening new long or short contracts without regard to closing previously existing positions.
The Long/Short Ratio currently stands at 1.0048; there is almost perfect equality in short and long positions. This indicates there is an equilibrium before a potential move.
