Solana (SOL) has been locked in a tight consolidation since mid-November, with neither buyers nor sellers able to take control. The Solana price continues to bounce between $125 support and $145 resistance, creating an indecisive structure that has frustrated short-term traders.
Despite this, several indicators now suggest that this stagnant range may be nearing its end.
Solana Holds Range as Buyers Defend $125 and Sellers Cap $145
SOL remains pinned below the $145–$146 resistance band, where sellers have repeatedly stepped in. Meanwhile, every dip toward $125 has been met with buying interest. The result is a sideways pattern that offers little clarity for momentum traders.
Solana Price Range | Source: TradingView
One factor adding weight to this range is the behavior of the Chaikin Money Flow (CMF).
CMF tracks the relationship between price and volume to determine whether large players are accumulating or exiting. Positive readings suggest inflows; negative readings indicate outflows.
Recently, Solana’s CMF attempted to move above zero while forming higher lows—an early sign of continued support from bigger traders. However, SOL has still failed to break above $145, signaling limited demand at higher prices. The CMF has now slipped below zero, showing weakening inflows.
If the CMF trendline breaks down further, pressure could build under the $125 support zone. Losing this level could trigger a move toward the next major area at roughly $121.
SOL is also reacting to heavy trading activity around the $132–$136 region. This congestion area has become a battleground for buyers and sellers. When volume clusters like this, the market typically waits for a clear catalyst before choosing a direction.
Why a Break Above $146 Could Spark a Move Toward $165
The next significant test for SOL is the $146 resistance. A daily close above this level would signal that buyers finally have enough strength to break the month-long ceiling.
Such a breakout could propel Solana toward $164–$165—a roughly 23–25% move from current prices.
This target comes from the next major swing zone on the chart, where previous trading activity is concentrated. Once a long-held range breaks, price often accelerates toward the next liquidity pocket, which in this case is around $164–$165.
Solana DEX Outperforms | Source: X
Another bullish factor is Solana’s dominance in decentralized exchange (DEX) activity. SOL has led DEX volume for 16 consecutive weeks, signaling strong network usage and sustained engagement from active traders.
Growing activity does not guarantee upward price movement, but it does highlight continued trust and participation in the ecosystem.
Still, the lack of conviction at $145 remains a concern. Without a decisive breakout, the range can drag on—or weaken.
Can Solana Drop Lower? Key Levels to Watch
SOL’s next major move depends entirely on how the range resolves.
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Bullish scenario: A daily close above $146 opens the path to $164–$165. A strengthening CMF would further validate the breakout.
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Bearish scenario: Another rejection at $145 paired with falling CMF could push SOL back toward $125. A breakdown there would expose $121, the next support.
Some analysts on X have even pointed to a deeper bearish case near $40 if whale activity shifts dramatically. This scenario hinges on significant capital exiting the market.
For now, Solana remains trapped in its consolidation. Above $146, upside toward $165 becomes viable. Below $125, a retest of $121 could follow.
Until one of these key levels breaks, traders should expect continued slow and choppy conditions.
Disclaimer
This material is for informational purposes only and does not constitute financial, investment, or other professional advice. Trading or investing in crypto assets involves risk. Forecasts or price projections may change at any time and are not guaranteed to be accurate.
