$SOL Eyes $195 — Is This a Dead Cat Bounce or a Genuine Rally❓

As the second round of US-China trade talks kicks off Monday, Solana is showing signs of recovery. This rebound is fueling optimism in Solana derivatives, with rising Open Interest and increased buying activity.

Technically, Solana’s outlook looks strong for a sustained rebound as long as support holds above $150. After three consecutive days of gains, SOL rose over 1.5% at Monday’s open, signaling positive momentum ahead of the trade negotiations. If bulls maintain control above $150, Solana could push toward $180.

Solana’s surge after four bullish candles helped it recover from last Thursday’s 5.85% drop, surpassing the key $150 level. The $142 support aligns with the 23.6% Fibonacci retracement from its January high of $261 to April’s low of $105. A daily close above $157, the highest in a week, could extend the rally toward $183, near the 50% Fibonacci level. However, failure to hold above $157 might see SOL test $142 again, and a break below $140 could lead to a retest of April’s low at $105.

Meanwhile, Solana’s derivatives market shows growing bullish confidence. Open Interest jumped 2.2% in 24 hours to $6.55 billion, indicating increased capital flow. The OI-weighted funding rate rose to 0.0053%, meaning bulls are willing to pay a premium to maintain price alignment. Short liquidations surged to $5.12 million in the past day, far exceeding long liquidations at $1.77 million, signaling a bullish shift as bearish positions get wiped out.

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