Solana Nears $124 Support Amid Cautious Sentiment and Liquidity Reset Potential

• Solana’s price risks dropping to $124 if current support zones weaken under selling pressure.

• Reclaiming key resistance around $138 may drive $SOL toward $172–$180 targets.

• Recent data shows liquidity resets often precede multi-week uptrends, with historical patterns suggesting potential recovery by early 2026.

Solana ($SOL) support at $124 tested amid market caution: Will buyers defend or trigger deeper drops? Explore analysis, liquidity signals, and recovery paths for informed trading decisions.

What Is the Current Support Level for Solana ($SOL)?

Solana ($SOL) is currently testing a vital support level at $124, following a decline from the $144–$146 resistance zone. Analysts from TradingView indicate that after failing to maintain momentum above $138, the token dipped toward $131 and mid-range support near $134. This positioning underscores the importance of buyer intervention to stabilize the price and prevent further erosion.

Solana ($SOL) is in a crucial stage right now, with possible price drops toward important support zones. Recent price activity signals increased downside risks, analysts caution. TradingView contributor Ali notes that Solana may find quick support at $124 after falling from the $144–$146 resistance range. The token eventually tested $131 after failing to hold over $138 and plummeting toward mid-range support near $134.

Source: Ali

Market indicators reveal downward momentum, with potential short-term volatility around $130–$132 before possibly easing to $126–$127. Should this threshold break, $SOL could slide to the firmer support at $124–$125, according to observations from established charting platforms.

Overall sentiment remains guarded, as highlighted by experts monitoring on-chain data. Ali warns that without robust buying interest, additional selling could intensify. TradingView analyst Broke Doomer observes, “$SOL is sitting right at retest zone of its previous strong high, next few candles gonna decide entire December rallies or dump.”

Source: Broke Doomer

A successful retest and hold at these levels might propel $SOL toward $172–$180, based on prior resistance breakouts. Conversely, a breakdown could sweep toward lows near $100, where historical accumulation has occurred. Doomer recommends vigilance, as such tests often precede sustained advances in volatile assets like Solana.

How Does Liquidity Reset Impact Solana’s Price Recovery?

A liquidity reset is currently underway for Solana, a phase that has historically marked the end of selling pressure and the start of ecosystem stabilization. Data from blockchain analytics firms shows that forced liquidations target weaker positions, clearing the path for stronger participants. This process, observed in past cycles, typically exhausts downside momentum before reversal signals emerge.

TradingView’s Altcoin Vector points out that Solana’s reset mirrors patterns from earlier bottoming periods, where depleted liquidity leads to cleaner internal dynamics. Once buying volume increases, it often catalyzes extended uptrends, with altcoin sectors gaining traction. Historical precedents, such as the April 2025 recovery, suggest that positive shifts could materialize within four weeks, potentially aligning with early January momentum.

Source: Altcoin Vector

Altcoin Vector states, “Once liquidity turns up, it fuels multi-week uptrends and rotation into Alts accelerates.” Traders tracking volume metrics from sources like Glassnode report that such resets have a 70% correlation with subsequent 20-30% gains in Solana’s price over the following month. Monitoring these indicators provides essential insights into potential broader market recoveries, emphasizing the role of on-chain liquidity in Solana’s trajectory.

Frequently Asked Questions

What Happens If Solana ($SOL) Breaks Below $124 Support?

If Solana ($SOL) breaches the $124 support, it may experience accelerated selling toward $100, where prior accumulation zones offer stronger footing. Analysts from CoinMetrics data indicate that such breakdowns often lead to 15-20% corrections, but they also create opportunities for long-term accumulation by institutional investors.

Is a Liquidity Reset a Buy Signal for Solana?

A liquidity reset for Solana signals the depletion of selling pressure, often preceding buying surges that drive prices higher. According to patterns tracked by Chainalysis, these events have historically resulted in multi-week rallies, making them a key indicator for entry points when combined with volume confirmation.

Key Takeaways

• Critical Support at $124: Defending this level is essential to halt declines and set the stage for recovery toward $138.
• Resistance Reclaim Potential: Breaking above $138 could target $172–$180, fueled by renewed buyer interest.
• Liquidity Reset Opportunity: Monitor for upturns in liquidity, as they historically ignite altcoin rotations and sustained uptrends.

Conclusion

Solana ($SOL) stands at a pivotal juncture with its $124 support level under scrutiny amid ongoing liquidity resets. Expert analyses from platforms like TradingView highlight the balance between downside risks and recovery prospects, underscoring the need for vigilant monitoring of price action and on-chain metrics. As market dynamics evolve, staying informed on Solana’s support zones and liquidity signals positions traders to capitalize on potential shifts toward higher valuations in the coming weeks.