Solana Analysis: Are buyers holding their ground or is a further decline imminent?

Story Highlights - Solana is currently listed at $142.43 (As of: January 12, 2026) with a weekly performance of +5.43%, but remains below the critical resistance zone of $145–160, where sellers still dominate. - The zone of $118–120 provides a confirmed support; a break below would unleash new downside risks toward $105–100.

Key Resistances and the Question of Seller Control

After weeks of consolidation above the support zone of $118–120, Solana shows signs of potentially stabilizing conditions. With the current price of $142.43, however, SOL is approaching the long-term resistance—this is the critical moment to check whether buyers are gaining ground or if sellers are maintaining control.

As long as SOL remains below $145–160, the overall structure stays under seller influence. This zone is not just a price level but a strong supply zone that has repeatedly acted as resistance in previous sell-offs. Failing to sustainably break through this zone would increase downside risks toward $105–100.

Technical Indicators Show Mixed Signals

On the 4-hour chart, Solana has compressed into a narrowing range—a classic reversal wedge pattern. Selling pressure is decreasing, but sellers still hold the descending trendline. This situation indicates that downward momentum is waning without a confirmed new uptrend.

Momentum indicators show interesting divergences: The RSI diverges bullishly from the price on the 4-hour timeframe, indicating decreasing selling pressure. On the daily chart, a double-bottom-like formation is emerging—a classic base-building pattern. However, these signals are early and require further confirmation before considering a true trend reversal.

Clear Levels for the Next Phase

The next trading scenario depends on well-defined price levels:

• Critical support: $118–120
• Major resistance: $145–158 → $160
• Short-term bullish target: $132–136
• Target on continuation downward: $105 → $100
• Invalidation: Sustained break below $118

Any rise toward the $145–160 zone should be watched closely—this is where it will be decided whether buyers show acceptance or if sellers trigger new waves.

Conditions for a Sustainable Turnaround

For Solana to initiate a structural change in direction, three things must come together:

1. A breakout and acceptance above the descending trendline with increasing volume
2. Sustained trading above $132 as a new baseline
3. RSI confirmation above the midline (50), indicating momentum strength

Without these confirmations, upward movements remain merely counter-movements within a larger downtrend—not the start of a new bullish cycle.

What the Current Solana Chart Indicates

The current price action at $142.43 shows conditions that could support a technical rebound—but not a confirmed trend reversal. The support at $118–120 remains the key level: holding it keeps the door open for a correction toward $145–160, while a break below paves the way toward $105–100.

This is a reaction zone for traders, not an area for confident long positions. Focus should be on volume, RSI confirmation, and behavior around the $132–136 zone. Only if SOL breaks through these levels with strength can the bear phase truly be considered over.

Frequently Asked Questions

Is Solana in an uptrend or downtrend?
Solana remains overall in a downtrend. The current indicators suggest a possible temporary counter-movement, not a confirmed trend reversal.

Is now a good time to buy?
The zone of $118–120 is a reaction zone but not an area for aggressive buying. Wait for confirmation above $132 and ideally acceptance in the $145–160 zone before considering a trend reversal.

How could SOL develop in 2026?
Under stable market conditions and growing adoption, SOL could target the zone $180–250 in 2026. In a negative scenario, declines toward $120 or below are possible if market conditions worsen.