Solana (SOL) Price: Leverage Wipeout Sends Token Tumbling Toward $130

TLDR

• Solana (SOL-USD) dropped from mid-$140s to around $133-135, with a session low near $130, following Trump’s Europe tariff threats and market-wide risk-off sentiment.
• Derivatives markets saw $59 million in long liquidations against only $1.4 million in shorts, causing open interest to fall 7-8% to $8.1-8.2 billion.
• Solana ETFs recorded their first daily outflows in six weeks, with $15.46 million leaving the funds, though weekly inflows remain positive at $45-47 million.
• Price broke below key support at the 20-day and 50-day moving averages around $137-138, with immediate support now at $130-133.
• Technical indicators show bearish momentum with MACD crossing below its signal line and RSI dropping to mid-40s, while resistance sits at $137-138.

Solana (SOL-USD) is trading around $133-135 after falling from the mid-$140s in a sharp selloff that sent the token briefly to $130. The decline came as President Trump announced new tariff threats against European economies related to the Greenland dispute, triggering risk-off moves across equities and cryptocurrency markets.

The derivatives market absorbed a major leverage flush over the past 24 hours. Roughly $59-60 million in long positions were liquidated compared to just $1.4 million in shorts, creating a 42:1 liquidation ratio. This one-sided positioning forced many bullish traders out of the market when key support levels broke.

Open interest in Solana futures dropped 7-8% to approximately $8.1-8.2 billion. Trading volume spiked to $13.3 billion during the same period. This combination of falling open interest and rising volume typically signals forced deleveraging rather than voluntary selling.

The long/short ratio compressed to 0.95, showing the market has shifted to a slightly short-biased stance. Top Binance traders maintain a long ratio above 3.5, indicating some professional accounts are holding bullish positions while retail traders retreat. Funding rates sit near -0.0004%, showing a slight advantage for shorts without reaching extreme levels.

Digital asset funds recorded $2.17 billion in weekly inflows, the largest since October 2025. The United States contributed $2.05 billion of that total, with Europe and Canada adding tens of millions more. Solana captured $45-47 million of fresh capital during the week even as spot prices declined.

ETF Flows Turn Negative

Solana ETFs experienced their first daily outflows in approximately six weeks. One dataset shows $15.46 million leaving the funds over the past 24 hours. Another source recorded $2.2 million in outflows on January 16. These represent the first negative daily prints after a sustained period of continuous inflows.

Weekly flows remain positive, but the shift to daily outflows marks a change in marginal appetite as the technical structure weakens. The outflows suggest some institutional investors are trimming positions or pausing new purchases while the chart deteriorates and macro risks increase.

Technical Breakdown

SOL-USD broke below its 20-day and 50-day exponential moving averages clustered around $137-138. This band previously acted as support but now serves as overhead resistance. The break confirmed a loss of the short-term bullish structure.

Immediate support sits at $130-133, aligning with the lower boundary of a falling wedge pattern. Below that level, the market is watching the December base at $125 and deeper demand zones at $118-120 and $116-117. A daily close under $130 would confirm a wedge break and potentially open a move toward $118-120.

On the upside, bulls need to reclaim the broken moving average band at $137-138. Above that level, resistance sits at $145-149, which has capped price multiple times. The 100-day moving average near $148-149 and broader resistance up to $149.50 define the key supply zone. Further out, the 200-day moving average around $159 and range highs near $170 remain medium-term targets if buyers regain control.

Momentum Indicators

The daily MACD crossed below its signal line with the histogram turning negative, confirming strengthening bearish momentum. The daily RSI rolled down from bullish territory toward the mid-40s, consistent with a shift from uptrend to neutral-to-bearish conditions.

On the 30-minute chart, RSI crashed to around 19, well below the 30 oversold threshold. Such extreme readings typically precede short-term bounces, though these counter-trend rallies do not repair daily chart damage unless price reclaims $137-140 with volume.

The 4-hour Chaikin Money Flow sits near -0.09, reflecting net capital outflows. Bull-Bear Power reached -13, the most intense bearish reading since early January. The Awesome Oscillator on the daily chart flipped from green to red bars while remaining above zero, showing positive momentum is fading.

Price is consolidating below $135 and the 100-hour simple moving average. A bearish trend line formed with resistance at $140 on the hourly chart. Immediate resistance appears near $135, with major resistance at $136 and $140.

If Solana fails to rise above $136, initial downside support sits at $132. The first major support level is $130, with a break potentially sending price toward $122 and then $115.

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