Peter Smith
Solana (SOL) holding strong at the critical $200 level after getting hammered from its $260 highs. But here's the kicker – open interest just reset to neutral, and that usually means one thing: big moves are coming.
Why SOL's $200 Defense Could Spark the Next Bull Run
Solana just took a beating, dropping from nearly $260 to the $200 psychological barrier. But this isn't just any random level – we're looking at a perfect storm of technical support here.
The 0.618 Fibonacci retracement, VWAP support, and high timeframe levels are all lining up. When you see this kind of confluence, smart money starts paying attention. Instead of panic selling, we're seeing consolidation around $200, which usually signals a bottom.
Open Interest Reset Changes Everything for SOL
Here's where it gets interesting – while SOL was getting crushed, open interest got completely flushed out. All those overleveraged positions? Gone.
This is like clearing out a traffic jam. When open interest resets, fresh money can come in without worrying about massive liquidations. This pattern – correction, reset, consolidation – usually sets up the next leg higher.
SOL's Bullish Structure Remains Intact
Let's be real – SOL's chart structure is still bullish. Yeah, we had a correction, but the bigger picture hasn't changed. We're still making higher highs and higher lows, so this $200 level could just be another higher low.
The psychological aspect of round numbers like $200 can't be ignored. Every time SOL approaches this level, buyers step in like clockwork.
Plus, Kazakhstan just announced they're launching a stablecoin backed by Solana, working with Mastercard and a major local bank. When traditional finance players start building on your blockchain, bigger moves usually follow.
Peter Smith
