Solana Price News: SOL Sees Selling Pressure at $200 – Market Structure Favors Push to $280

Solana (SOL) has gone up by 14% in the past 7 days and currently sits at $195 after briefly surpassing the $200 level earlier today.

SOL hit a session high of $208 and started to retreat right after. Trading volumes have surged by 10% in the past 24 hours and remain quite elevated compared to historical levels.

Solana Trading Volumes – Source: CoinMarketCap

Trading activity during this period accounted for 14% of the token’s circulating supply with nearly $15 billion worth of SOL exchanging hands in the past day.

Crypto liquidations in the past 24 hours have surged to $800 million. This includes $50 million worth of SOL long positions that were flushed out as the token has dropped by 4% today.

ETF Inflows and Open Interest Rise for SOL

The recently-launched REX-Osprey Solana + Staking ETF (SSK) has seen its assets under management increase to $182 million.

As Solana gets closer and closer to $200, trading volumes seem to be increasing. The last time the price got near this level, volumes also exceeded $10 billion.

The question is, is buying interest strong enough to overcome the selling pressure?

Higher inflows toward Solana-linked ETFs could partially answer that question along with traders’ positioning in the futures market.

Solana Open Interest (USD) – Source: CoinGlass

We can see that open interest (OI) has increased near its recent record of $12 billion once again, which means that traders are positioning for the continuation of this uptrend.

These OI levels have already surpassed a previous record of $8.5 billion from January 18 when SOL reached its current all-time high of $294. Hence, traders are betting heavily on a move toward this all-time high, especially at a point when Ethereum (ETH) is just 4% away from setting a new price record.

Key Levels to Watch as Solana Pulls Back

Looking at the daily chart, we can see how the selling pressure spiked right after SOL entered this key area of resistance. Trading volumes have jumped above the 14-day moving average.

SOL/USD Daily Chart (Coinbase) – Source: TradingView

Since cryptos trade 24/7, we could still see the token recovering within the next few hours if late buyers show up to scoop SOL as it hits $190.

The daily chart shows some key areas of support to watch as SOL retreats. Since market sentiment is bullish and macro conditions favor the continuation of this uptrend, a pullback at this point would be a good opportunity to enter a long position at a much more advantageous price point.

The $180 level is the first area to watch, followed by the $165 mark. The latter is particularly relevant as it coincides with the 200-day exponential moving average – an important indicator tracked by many market participants.

A bounce off any of these two levels, especially if they are accompanied by strong volumes, would anticipate another move toward $210 and possibly a big leap to $280 right after if we get a bullish breakout.