Solana price is $180 as open interest hits $7.75B, the highest in 4 months, despite a 7% dip from its $186 high on May 23.
The price of Solana (SOL) has decreased by 7% since May 23, when it reached a weekly high of $186.
At the time of publication, it was trading at $172, with bulls encountering resistance at $174.
Despite the bearish headwinds, Solana’s open interest is at a four-month high.
Is it possible for Solana price to surpass resistance as futures positions increase, or will the decline persist?
Solana’s Price Aim Is $180, Despite Headwinds Presence
The current value of SOL is bearish as traders encounter significant headwinds in their efforts to surpass the critical resistance level of $180.
The daily price chart’s RSI indicates that the momentum is presently bearish.
The RSI has flattened, indicating that traders are not inclined to accumulate at the current price, in addition to having a reading of 46.
The -DI line (blue) oscillates below the +DI line, indicating that sellers are in control, which is consistent with the bearish outlook of the DMI indicator.
This implies that Solana may continue to underperform its competitors, including Ethereum, and extend its downward trend.
The ADX line is also trending downward, indicating that the current trend is feeble.
A significant support zone is situated beneath the current Solana price.
Historical data indicates that SOL experiences a rebound whenever it enters this zone.
This implies that investors may need to wait until Solana reaches a cost of $168 to $169 before the next bullish leg occurs.
In contrast, the price may rebound to test the initial resistance level at $178 if purchasers begin to accumulate Solana at this time.
Upon breaching this resistance, the cost of SOL is expected to pursue $185 and potentially extend the upward trend to the $300 SOL target set by top traders.
The RSI must surpass 50 and make a higher high to verify that Solana price is poised for a bullish reversal beyond $180.
Solana’s Open Interest Has Reached Four-Month High
Solana’s open interest is increasing, eventually reaching $7.5 billion on May 29.
This metric has been at its highest point since mid-January, indicating that futures traders are increasing their wagers on Solana’s future price performance.
The Solana price traded near all-time highs the last time Solana’s open interest was at these high levels.
Consequently, traders should prepare for potential volatility if the open positions are compelled to liquidate if Solana makes an unexpected move, as the price has not yet caught up with this metric.
Additionally, Coinglass data indicates that most of these positions are long, as funding rates remained positive on May 29.
This emphasizes a bullish bias that the price of Solana may rise beyond $180, but it also increases the likelihood of coerced selling.
In summary, the Solana price is at a critical juncture, as the open interest has reached a four-month high, but the price has encountered resistance at $174, causing it to halt.
Solana may surpass $180 and undergo a bullish reversal if purchasers increase their purchases.
