- Solana dropped to lows of $128 after slipping from above $135.
- Technical outlook points to bears potentially pushing prices toward $120 or lower.
- Bitcoin’s trajectory will also shape broader market sentiment.
Solana (SOL) fell roughly 4% over the past 24 hours, trading below $130 as of January 20, 2026. The altcoin’s value declined amid increased selling pressure across crypto markets, with Bitcoin correcting to around $90,600.
Derivative indicators for Solana imply a bearish tilt, signaling the possibility of further downside toward levels below $120.
Solana slips beneath $130
Top altcoins still show notable on-chain traction, and Solana recently crossed the $1 billion threshold in real assets, highlighting long-term potential. However, short-term sentiment has cooled.
Rising global economic uncertainty and heightened crypto volatility have contributed to this weaker near-term outlook, with long liquidation events in SOL derivatives exceeding $20 million in the last 24 hours.
The liquidation imbalance—long positions accounting for more than 95% of wiped-out positions—signals an overcrowded bullish trade.
That concentration of leveraged longs left bulls especially vulnerable to cascading sell-offs. Aggressive deleveraging of those positions caused open interest in SOL futures to contract to roughly $8.2 billion as risk appetite declined.
Funding rates remain modestly positive at about 0.0070%, but seller dominance pushed SOL prices down about 8% last week.
Monthly action trimmed the altcoin’s gains to just +2.4% year-to-date.
Institutional flows present a mixed picture. U.S. spot Solana ETFs recorded more than $47 million in net inflows last week. Data from SoSoValue show net inflows rising from roughly $41 million and $20 million in the prior two weeks.
Still, spot-based selling could erode that support and trigger outflows.
SOL price outlook — Is $120 next?
As noted, Solana has traded below the critical $130 support after slipping beneath the 20- and 50-day exponential moving averages. The EMAs sit around $137 and $159, respectively, indicating a short-term bearish structure.
Charts also show the daily MACD line crossing below its signal line, with histogram bars extending in negative territory. The RSI holds near 41 and is moving toward oversold readings, suggesting there may be further room for downward momentum.
Failure of support around $125–$126 would open the path toward the $120 area. Bears could target the $116 lows touched on December 18, 2025.
On the upside, resistance sits near $137, with notable supply zones around $145 and $160. A decisive move in either direction will be important for bears or bulls.
Market sentiment will also hinge on Bitcoin’s direction; further declines in BTC would increase SOL’s downside vulnerability, while a Bitcoin recovery could relieve selling pressure and allow Solana to stabilize or reclaim lost ground.