Bears Take Control of Solana (SOL): Is $125 the Bulls’ Last Line of Defence?

TheNewsCryptoPublished on 2026-01-23Last updated on 2026-01-23

Abstract

Bearish momentum dominates the crypto market, with Solana (SOL) experiencing a 1.68% decline, trading around $128.02 after dropping from a daily high of $130.49. Key support lies at $127, and a break below could trigger further downside toward $126. Conversely, a move above $129 resistance may initiate recovery toward $130. Technical indicators reinforce the bearish outlook: MACD and signal lines are below zero, CMF at -0.10 indicates capital outflow, RSI at 41.81 shows weak momentum, and Bull Bear Power remains negative. Overall, SOL faces selling pressure with limited upside potential unless key resistance is breached.

The bearish momentum has been in the market for a long time, triggering the crypto tokens to nullify their recent gains. With the Fear and Greed Index value found at 34, the broader sentiment is fear. Notably, the largest assets, like Bitcoin (BTC) and Ethereum (ETH), are facing downward trends. Meanwhile, Solana (SOL) has registered a 1.68% loss in the last 24 hours.

Solana kicked off the day trading at a high range of $130.49, and the bearish entry has pulled back the price toward the bottom level of $126.85. Currently, SOL trades around $128.02, with its daily trading volume having dropped by 36.04%, reaching $3.26 billion. As per Coinglass data, the market has experienced a liquidation of $6.77 million worth of Solana during this time span.

On the 1-hour chart, the asset is compressing inside a triangle, showing tightening volatility as buyers and sellers reach equilibrium. This consolidation precedes a sharp breakout. An hourly close above $129 displays bullish continuation, while a break below $127 could signal renewed downside momentum.

Assuming the Solana price is facing a deep correction on the downside, it could test the support at the $127 range. With the potential bears in the market, it invites the death cross to emerge, which triggers the price toward its former low below $126.

On the upside, if the bulls reappear, the Solana price might move up to the resistance of $129. A break beyond this level could initiate the golden cross to take place, supporting further recovery, and sending the price above the $130 mark

Bearish Momentum Builds Across Solana Indicators

The technical indicators of Solana show that the Moving Average Convergence Divergence (MACD) line and the signal line fall below the zero line, pointing to the strong bearish momentum. The short-term price action is weaker than the longer-term, confirming a downtrend, and it may continue unless the momentum starts to reverse.

In addition, the Chaikin Money Flow (CMF) indicator is located at -0.10, which hints that selling pressure is outweighing buying pressure in the SOL market. The capital is flowing out of the asset, reflecting weaker demand and a bearish bias in the short term. Unless the value moves back above zero, the upside momentum is likely to remain limited.

SOL’s daily Relative Strength Index (RSI) settled at 41.81 indicates weak to neutral momentum. The asset is leaning bearish, but it is not oversold. The selling pressure is present, and there is still room for further downside. Moreover, the Bull Bear Power (BBP) reading of Solana at -1.07 suggests strong bearish dominance. The price is found below the equilibrium level. Until it moves closer to or above zero, the downside momentum will persist.

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TagsAltcoinCryptocurrencySOLSOL PriceSolana

Related Questions

QWhat is the current Fear and Greed Index value and what sentiment does it reflect for the broader crypto market?

AThe Fear and Greed Index value is 34, which reflects a broader market sentiment of fear.

QWhat key price levels on the 1-hour chart are crucial for determining SOL's next directional move or a continuation of the downtrend?

AAn hourly close above $129 would indicate a bullish continuation, while a break below $127 could signal renewed downside momentum.

QWhich three technical indicators are mentioned as showing strong bearish momentum for Solana (SOL)?

AThe three technical indicators showing strong bearish momentum are the Moving Average Convergence Divergence (MACD), the Chaikin Money Flow (CMF) at -0.10, and the Bull Bear Power (BBP) reading of -1.07.

QWhat is the significance of a 'death cross' potentially emerging for the Solana price?

AThe emergence of a 'death cross' would trigger the price to move toward its former low below $126.

QBy what percentage did Solana's daily trading volume drop, and what was the resulting volume figure?

ASolana's daily trading volume dropped by 36.04%, resulting in a volume of $3.26 billion.

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