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Crypto price prediction: Solana (SOL) is facing some recover after strong rally

January 07, 2025

SOL crypto price prediction:

Solana (SOL) has been making headlines with its price movements. After a strong rally of more than 12% last week, the cryptocurrency experienced a slight dip on Tuesday. According to on-chain data, Solana’s open interest representing the amount of money flowing into its futures market has reached an all-time high of $6.48 billion. This increase in open interest could signal continued bullish momentum for Solana in the days ahead.

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On Friday, Solana broke through a key descending trendline that had been limiting its growth since mid-November. This breakout was accompanied by a 4.6% rally. Tuesday, Solana's price is trading around $216, slightly lower than its recent highs. The $206 price level, which aligns with the 50-day Exponential Moving Average (EMA), is now being watched closely as a support level. If this level holds, Solana could aim for its next resistance point at $228.37. But for now the price of Solana is looking deep down to $198, if it touches the support level $180 then more decline will be cautious.

Indicators on Solana’s daily chart suggest optimism among traders. The Relative Strength Index (RSI) stands at 47.28, below the neutral mark of 50, signaling slight downfall momentum.

The rise in Solana's open interest further strengthens its bullish outlook. Data from Coinglass reveals that open interest in Solana futures jumped significantly from $4.25 billion at the start of the year to $6.48 billion by Tuesday. This increase suggests that more traders are entering the market with new funds, potentially driving Solana's price higher in the near future.

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Despite the positive signals, traders should remain cautious. If Solana's price falls below the $180 support level and closes there, the bullish momentum could weaken. In such a case, Solana might test its next support level at $160.85. For now, the market remains hopeful, with key indicators pointing to a potential continuation of Solana’s rally.