Solana Holds Near $127, but Analysts Warn of Breakdown Risk

On Saturday, January 24, Solana (SOL) was trading at $127, having fallen 0.09% in the last 24 hours, as CoinMarketCap data shows. The trading volume fell by 3.7% to $3.26 billion, and losses per week stretched to 11.65% as the markets shifted toward weaknesses. 

Source: CoinMarketCap

Solana Rejection Signals Weak Momentum

Crypto analyst RISK highlighted on X that SOL experienced a severe rejection at the resistance level of 145-148. The rejection proved a smaller high on the daily chart and indicated decreasing bullish momentum. Sellers were offering higher prices as the price attempted to break out.

Solana is consolidating around the support band of $127. The level represents one of the critical decision points for traders looking at the near-term direction. The token may face a potential liquidity sweep to the $120 and $118 demand zones, which previously were above the buyers’ defense.

Such a demand block has yielded good responses during previous sessions. Analysts are also trying to determine whether the buyers will react accordingly in case the price goes back to the zone. Volatility could increase as SOL leaves the ongoing compressed range.

Source: X

SOL must regain $132 and consolidate at that point on a daily closure to experience a bullish reversal. Without this reclaim, the solid resistance constrains any subsequent upside. Analysts caution that a sustained rise requires a significant shift in momentum.

Moreover, another analyst, BitGuru, mentioned that SOL is starting to stabilize. Buyers also attempt to defend the existing level moderately. The future of that defense will decide the direction the price takes in the coming sessions.

Also Read: Solana Approaches Key Neckline at $127, Next Trend Hinges on Breakout

With support, SOL can look at a short-term run to close resistance. Market involvement remains poor, and traders are hesitant. The price sits inside a range that triggered sharp moves earlier.

Source: X

Derivatives Trends and RSI–MACD Readings Signal Weakness

CoinGlass data shows that the trading volume decreased by 10.01% to reach $9.30 billion. The open interest dropped by 1.31% to $7.53 billion, and the OI-weighted funding rate was neutral at 0.0076%.

Source: CoinGlass

The RSI is 40.84, showing that momentum weakened as it entered the low band. The indicator stays below the signal line of 52.85 to indicate the intensity of the continuing negative trend. 

MACD values indicate a downward trend in momentum. The MACD line is at -1.86 compared to the signal line of -1.15 and has a 0.71 value in his histogram. The readings are still consistent with the bearish short-run structure.

Source: TradingView

The market structure of Solana is still corrective in the meantime. Analysts indicate that traders are monitoring liquidity pockets, support clusters, and trend boundaries as SOL prepares to take its next step.

Also Read: Sui (SUI) Gains Momentum as Developer Internship Launches and TVL Surges