Solana (SOL) Price Bounces Back Above $200, What’s Next?

Solana (SOL) price has bounced back above $200 after a period of market uncertainty. This shows strong buying interest at key support levels. Earlier, SOL hit an all-time high of $268, with 24-hour trading volume surpassing $23 billion.

The cryptocurrency has outperformed major assets like Ethereum (ETH) and XRP, maintaining its uptrend within an ascending channel. With renewed momentum, SOL now faces crucial resistance levels that could determine its next move.

SOL Holds Key Support and Recovers Quickly

Solana recently confluence rejected at a significant area between the $175 and $180 levels. Buyers emerged to halt the decline. The level formed by the blue line was the demand area in the previous periods. SOL has bounced back from this level, indicating that it is accumulating at lower prices.

The market analyst at AMCrypto posted on X that Solana being higher when compared to ETH and XRP is a sign of strength in the asset. The level is put to hold and brings $200 back into play for a potential further appreciation of SOL in case it maintains above the critical resistance. Currently trading at 205.82 SOL is already gaining momentum.

$200 as a Critical Resistance for Momentum Shift

Solana price has taken back $200, the immediate next level that must be taken. If the $210-$220 range can act as a temporary resistance price can move ahead. A move above this level could present further buying pressure that may lead to an analysis of $250, and even more, in the near future.

The chart pattern showing an ascending channel being formed also supports that Solana is generally in an upwards trajectory. In this scenario, if the bullish trend persists, the top of this channel suggests that the price target in the next weeks shall be between $280 and $300. Inability to overcome the $210-$220 area may pull the price back towards the current levels of consolidation.

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Solana (SOL) Open Interest Declines Amid Price Recovery

Despite SOL’s price reclaiming $200, open interest (OI) data shows a decline, suggesting reduced market participation.

In the last 24 hours, the total trading volume has crashed by 7.53%. It’s an indication that most traders could be closing their positions for short-term book profits or due to short-term uncertainties.

The total open interest currently sits at $3.0 billion, down by 7.53% from the previous day. Perpetual contracts, which were dominant in trading, also fell by 7.53% to reach an open interest of $3.0 billion. Furthermore, the open interest in futures contracts went down by 7.62% with an average of 17.6 million US dollars.

Solana Price Technical Indicators Signal Mixed Momentum

A golden cross can be seen as the 13-day EMA moves above the 49-day EMA, signaling a bullish trend and suggesting continued upward momentum.

Now, Solana (SOL) price is situated slightly below the blue line 49 which means that consolidation of higher prices is required for a longer term upward movement continuation. For this to occur, an increase above this average would further support additional positive momentum on the upside.

The MACD line systematically resides below the signal line, and hence, short-term bearish pressure is evident. Furthermore, the negative histogram  indicated that there is a selling pressure in the market. However, whenever the MACD line has begun to rise, it can be an indication that the upward momentum has begun and that prices could be set to rise from the current levels.

In addition, the current RSI value is at 41.55, which remains below the average RSI of 50, indicating a weak price move in SOL. In order to have a higher outlook, more so a bullish one, the RSI must break the level of 55.11, this would improve the prospect of a breakout to higher growth.

Key Levels to Watch

$200 is now the immediate support level of SOL. Only if the price maintains its position above this level, there will be more evidence to emphasize on the continuing increase in the price. If SOL goes below $200, it can reach the $175-$180 lows, which have been tested multiple times by the buyers.

On the flip side, $210-$220 is an important supply zone. Getting above this range may bring more buyers into the market and push SOL towards $250–$280 over the mid-term. It is advisable for the trader to pay close attention to price movements in these areas to determine the next move.