After a recent rally, Solana has once again drawn the spotlight in the cryptocurrency market. On the Binance Futures daily chart, the price of SOL hovered near $96.55, marking a 3.74% increase and edging close to the key $100 threshold—a sign of strong short-term recovery. Open interest, a crucial metric indicating trading activity and sentiment, has surged in Solana to 27.77 million SOL, nearing its yearly high from February. Such growth in open interest, especially in a highly leveraged climate, hints at mounting volatility ahead.
Rising open interest and leverage warning
As open interest in Solana approaches its annual peak, analysts have raised red flags over the mounting use of leverage. When rising prices coincide with climbing open interest, it often signals robust bullish momentum among traders. However, this also introduces heightened risk: overcrowded positions during swift rallies can quickly unravel, resulting in sharp, short-term price swings if the market suddenly pulls back.
Analysts have stressed that SOL’s open interest approaching a yearly high suggests aggressive leverage is on the rise in the market, and that investors need to proceed with caution.
In this context, the $100 mark stands out as a critical resistance level for SOL. If buyers manage to firmly surpass this barrier, further upside momentum could be possible. On the flip side, an excessive buildup of leveraged long positions makes the market vulnerable to abrupt selling pressure, which could trigger rapid corrections.
New price target for SOL: $110–$138 range
Recent charts confirm that Solana’s price action has turned decisively upward since recovering from its autumn low. Having climbed to $96.53 and nearing $100, SOL demonstrates strong buyer confidence. In an analysis shared by More Crypto Online, it is noted that SOL recently broke above its accumulation range, maintaining a technically bullish trend.
The immediate resistance zone for the near term is identified between $110.82 and $138.80. This range corresponds to the 100%, 123.6%, 138%, and 161.8% Fibonacci extension levels. If buyers can hold momentum, this area is cited as the principal target within the current SOL wave structure.
On a broader timeframe, further resistance lies at $119.37, $142.00, $168.92, $216.29, and $250.94. The closer the price moves to these upper bands, the greater the potential for intensified selling pressure.
Short-term supports and downside scenario
Conversely, charts also outline the levels where the bullish scenario for SOL could falter. Support exists at $62.42 and $43.22, with the crucial support band ranging from $48.78 to $31.95 in the event of a significant decline. Such a scenario would only come into play if the current rally fails and the price slips below key supports.
At present, buyers appear to control the market as SOL pulls away from its recent lows. The next major test lies in the $110 to $138 region, where price movement will help determine if the upward trend can be sustained.
