Solana (SOL) is standing at a critical juncture. While the price has recently dipped and bulls are struggling to break a key resistance zone, interest in futures trading is soaring. Open interest has reached $7.75 billion, the highest level in four months. Is this the prelude to a bullish breakout—or a warning sign of an upcoming correction?
Solana Hovers Near $180, but Technical Indicators Flash Caution
Since May 23, SOL has dropped by around 7%, falling from a weekly high of $186 to $172. Bulls are facing strong resistance between $174 and $180, and momentum is weakening.
The RSI (Relative Strength Index) has flattened at 46, indicating low buying pressure. Traders appear reluctant to accumulate at current price levels.
The DMI (Directional Movement Index) tells a similar story: the -DI line (seller pressure) is above the +DI line (buyer pressure), showing that bears are still in control. The ADX line is also trending downward, suggesting a weak and indecisive trend.
Key Support Zone and the Bullish Path Forward
Historically, SOL tends to bounce back whenever it enters the $168–169 support zone. If it returns there again, bulls may find another opportunity to regain momentum.
If buyers start accumulating sooner, we could see a retest of the $178 resistance level. A breakout above that could pave the way toward $185, and potentially even toward an ambitious target of $300, as forecasted by top traders.
To confirm this bullish reversal, RSI must rise above 50, and the price must form a higher high.
Open Interest Hits a 4-Month Peak – What Does It Mean?
Open interest for Solana futures hit $7.75 billion on May 29, the highest level since January. This spike signals that traders are increasingly betting on future price moves.
Historically, such elevated open interest levels were seen when SOL was trading near local highs. The current disconnect between rising open interest and a stalled price suggests impending volatility. If SOL makes an unexpected move, this could lead to forced liquidations.
According to Coinglass, most of these futures positions are long, as positive funding rates persisted on May 29. This shows bullish sentiment, but also increases the risk of forced sell-offs if the price turns against them.
Summary: Solana at the Edge – Breakout or Breakdown?
Solana’s market is on edge: open interest is surging, but price action has stalled at resistance. If bulls take charge, SOL could break through $180 and enter a bullish phase. If not, a drop to $168 may be needed before the next major move.
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