Key Points
- After testing a low near $150 on Tuesday, SOL is trading above $160.
- With rising demand and limited supply, the coin could move toward the $200 level if momentum continues.
SOL Recovers from Tuesday Lows
Solana’s derivatives market has not fully recovered since the deleveraging event on October 10, when more than $19 billion in crypto positions were liquidated within 24 hours. According to data from CoinGlass, futures open interest (OI) averaged about $17.63 billion on Wednesday, up from $7.7 billion recorded on Tuesday.
An increase in OI, which represents the notional value of outstanding futures contracts, suggests retail investors are regaining interest in the asset. A steady rebound in OI would support a short-term bullish outlook; without it, Solana’s recovery prospects could remain constrained.
Short-Term Breakout Outlook Remains Bullish
On the daily SOL/USD chart, Solana remains technically weak after failing to clear the psychological $200 level in the short term. SOL is currently trading around $160 per coin as the broader crypto market attempts to bounce from recent weakness.
The daily Relative Strength Index (RSI) sits near 40, indicating a waning bearish momentum. If the RSI climbs above the neutral 50 level, SOL could target the resistance area near $188 in the short term. A sustained bullish trend could push SOL to $200 for the first time since October 25.
Conversely, if the downtrend reasserts itself, SOL could fall below the $150 support and retest the recent low around $144.
Meanwhile, the daily Moving Average Convergence Divergence (MACD) indicator appears poised to generate a buy signal. That signal typically occurs when the MACD line crosses above the signal line and often encourages traders to increase risk exposure.
From current levels, a roughly 22% breakout would bring SOL to the $200 psychological mark.