Key takeaways
- SOL trades above $160 after testing a low of $150 on Tuesday.
- With rising demand and constrained supply, the token could approach the $200 level in the near term.
SOL recovers after Tuesday’s drop
Derivative markets for Solana have not fully recovered since the debt reduction event on October 10, which saw more than $19 billion in cryptocurrency positions liquidated in 24 hours. Data from CoinGlass showed that futures open interest (OI) averaged $17.63 billion on Wednesday, up from $7.7 billion recorded on Tuesday.
Rising OI — the notional value of outstanding futures contracts — suggests renewed interest from retail and institutional traders. A sustained increase in OI would support a bullish near-term outlook for SOL. If OI stalls or falls, Solana’s recovery potential could remain limited.
Solana eyes a short-term breakout
The daily SOL/USD chart remains tilted toward the downside after SOL failed to reclaim the psychological $200 mark. The token is currently trading around $160 as the broader crypto market digests the recent sell-off.
The daily relative strength index (RSI) sits near 40, indicating bearish momentum. If RSI climbs above the neutral 50 level, SOL could push toward the near-term resistance at $188. A sustained bullish run would likely see SOL revisit $200 for the first time since October 25.
Conversely, if the bearish trend continues to dominate, SOL could slip below the $150 support level and retest the recent low near $144.
On the upside, the daily MACD (Moving Average Convergence Divergence) is poised to generate a buy signal. That occurs once the MACD line crosses and settles above the signal line, often prompting traders to increase risk exposure.
A successful bullish breakout from current levels could produce a roughly 22% gain, bringing SOL toward the $200 psychological threshold.