Key takeaways
- SOL is trading above $160 after testing a low near $150 on Tuesday.
- Growing demand combined with limited supply could push the coin toward the $200 level soon.
SOL recovers from Tuesday’s slump
Solana’s derivatives market has not fully recovered since the October 10 deleveraging event that wiped out over $19 billion in crypto positions within 24 hours. Data from CoinGlass showed that futures Open Interest (OI) rose to an average of $17.63 billion on Wednesday, up from roughly $7.7 billion recorded on Tuesday.
An increasing OI — which measures the total value of outstanding futures contracts — indicates renewed engagement from traders and retail investors. If OI continues to climb steadily, it would support a short-term bullish outlook for SOL. If OI stalls or falls, however, Solana’s upside potential could remain constrained.
Solana bulls eye short-term breakout
The SOL/USD daily chart still shows bearish tendencies, with Solana yet to reclaim the $200 psychological level. At the time of writing, SOL is trading around $160 as the broader crypto market stages a recovery from the recent downturn.
The daily Relative Strength Index (RSI) sits near 40, signaling that the bearish pressure is waning. A move above the neutral 50 level on the RSI would suggest renewed momentum and could open the path toward the $188 resistance area in the near term. A sustained bullish advance from there could lift SOL to $200, a level it last tested on October 25.
If downward pressure returns, SOL may fall below the $150 support and retest recent lows near $144.
The daily Moving Average Convergence Divergence (MACD) indicator is poised to generate a buy signal if the MACD line crosses above the signal line. Such a crossover typically encourages traders to increase exposure and can catalyze further gains.
From its current price, SOL could see a roughly 22% upside move if momentum builds, potentially reaching the $200 psychological mark.