Solana (SOL) is trading around $82 at the time of writing on Monday, marking its fourth consecutive day of gains. While SOL futures prices have risen, the temporary drop in Open Interest shows that sentiment is divided. From a technical perspective, The 50-day Exponential Moving Average (EMA) at $88.80 appears to be a major resistance area to watch.
Output shows optimism, but participation is low
Market data shows a strong increase among traders, although participation in the SOL futures contract is decreasing. According to CoinGlass, OI’s cash-weighted average has increased to 0.0067% from 0.0042% on Sunday, indicating that long-term investors are willing to pay more money—usually a sign of growing confidence in the future.
However, this expectation is not fully supported by market activity. Open Interest in SOL futures fell to $4.97 billion from $5.07 billion on Friday, reflecting a decrease in total interest in the market. The difference – the rise in income following the decline in the Playable Interest Rate – reflects a different perspective, where the bias is present but the impact appears to be low.
Institutional demand remains soft
On the institutional side, Solana’s demand continues to show weakness. Data from Sosovalue shows that SOL-focused exchange-traded funds (ETFs) recorded $5.24 million in weekly inflows, marking the second straight week. If this trend continues, it could represent an increase in weekly outflows to date, which could add to the downward trend in SOL prices in the near term.
Will Solana extend the recovery to $93?
The SOL/USD 4-hour chart is bullish and bearish, with the currency up nearly 4% over the past 24 hours. At press time, SOL is trading at $82.50 per coin.
The long-term bias is mixed as SOL performs well below the 50-day and 100-day Exponential Moving Averages, maintaining a positive trend.
Strong indicators have also reversed growth, with some recent gains. The Moving Average Convergence Divergence (MACD) line remains above its signal, indicating buying pressure.
The Relative Strength Index (RSI) at 60 is above the neutral 50, indicating strong growth.
If the rally continues, Cardano may face immediate resistance at the 50-day EMA near $88.81, which closes back and defends a strong move to $98.02, near the 100-day EMA at $102.18.
However, if the sellers regain strength, the support area between $75.63 and $77.60 could act as a rebound area. An increase in sales would lead to a low on February 6 at $67.50.
