Solana (SOL) price is down 7% since May 23 after falling from a weekly high of $186 to trade at $172 at press time as bulls face resistance at $174. Despite bearish headwinds, Solana’s open interest continues to rise and currently sits at a four-month high. As futures positions surge, can Solana price break out above resistance, or will the decline continue?
Solana Price Targets $180 Amid Headwinds
SOL value today is bearish as bulls face headwinds in attempting to break SOL price past the key resistance level of $180. The RSI on the daily price chart shows that the momentum is currently bearish. Besides having a reading of 46, the RSI has flattened, an indication that traders are not willing to accumulate at the current price.
The DMI indicator shows a similar bearish outlook as the -DI line (blue) oscillates below the +DI line, a sign that sellers are in control. This means that Solana could extend the downward moves and underperform against rivals such as Ethereum. The ADX line is also tipping south, a sign that the current trend is weak.
A major support zone lies below the current Solana price, and looking at historical patterns, SOL tends to bounce each time it enters this zone. This means that bulls may have to wait until Solana drops to between $168 and $169 before the next bullish leg.
Conversely, if buyers start accumulating Solana now, the price may bounce to test the first resistance level at $178. Once it breaks this resistance, SOL price will aim for $185 and possibly extend the upward trend to the $300 SOL target set by top traders.
SOL/USDT: 4-Hour Chart
To confirm that the price of Solana is primed for a bullish reversal past $180, the RSI needs to cross above 50 and make a higher high.
Solana’s Open Interest Hits 4-Month High
Solana’s open interest is rising, and it reached $7.5 billion on May 29. This metric is now at the highest level since mid-January, a sign that futures traders are increasing their bets towards Solana’s future price performance.
The last time that Solana’s open interest was at these high levels, SOL price traded close to all-time high levels. Therefore, with the price failing to catch up with this metric, traders should anticipate incoming volatility if the open positions enter forced liquidations in case Solana makes an unexpected move.
Solana Open Interest
Moreover, data from Coinglass shows that most of these positions are longs, as funding rates remained positive on May 29. This highlights a bullish bias that Solana price may rally past $180, but also increases the chances of forced selling.
To sum up, Solana price is at a critical juncture as the open interest surges to a four-month high while the price stalls as it faces resistance at $174. If buyers step up, Solana may breach $180 and experience a bullish reversal.
For a long-term Solana price forecast between 2025 and 2030 – Read This.
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muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
