Solana price loses bullish momentum — will $126 support prevent a deeper pullback?

Solana price is hovering near the $126 support zone after losing upside momentum, as declining volume and reduced leverage show traders stepping back.

Solana was trading around $130 at the time of writing, up 1.4% on the day, though momentum appears to be cooling after a sharp rejection from higher levels.

SOL is down about 10% over the last week. During that time, prices have fluctuated between $125 and $145, indicating increased volatility around key technical levels.

Additionally, trading activity has decreased. Spot volume fell 6.8% to $5.62 billion over the previous day, indicating lower participation during the decline. According to CoinGlass data, open interest dropped 3.61% to $7.60 billion, while futures volume decreased 4.4% to $15.22 billion.

When taken as a whole, these declines indicate that traders are reducing their leverage and closing positions instead of taking on additional risk, which is a common pattern during corrective phases.

Institutional flows and on-chain activity remain constructive

Despite short-term weakness, institutional demand continues to build in the background. Spot Solana (SOL) exchange-traded funds recorded $2.92 million in net inflows on Jan. 21, as per SoSoValue data.

Monthly net inflows have now exceeded $103 million, bringing cumulative inflows to roughly $869 million.

Solana’s on-chain activity is still quite strong. According to DefiLlama data, daily decentralized exchange volume has nearly doubled since the beginning of 2026, going from about $2.5 billion to over $5.6 billion.

Despite a slight decline, the market capitalization of stablecoins is still over $14 billion, indicating strong liquidity.

Solana’s presence in real-world asset tokenization is also growing. Real world asset’s total value locked on the network has surpassed $1.1 billion, placing it third behind Ethereum and BNB Chain. This expansion continues to be fueled by institutional names such as BlackRock, Franklin Templeton, and Ondo.

At the same time, upgrades like Firedancer are improving network reliability, while regulatory clarity discussions and payments-focused partnerships support longer-term adoption.

Solana price technical analysis

From a technical standpoint, momentum has clearly rolled over. Solana failed to hold gains above the $145–$150 zone, where price was repeatedly rejected near the upper Bollinger Band. The current corrective leg began with that rejection.

SOL’s drop below its 20-day moving average suggests a loss of short-term momentum. Growing downward pressure is indicated by the daily relative strength index falling below the neutral 50 mark and into the low-40s. The corrective pattern has persisted because recent attempts at a bounce have stalled at lower highs.

Near-term support is clustered between $126 and $128, an area that lines up with the lower Bollinger Band and a previous consolidation zone. This zone is now under pressure. A sustained daily close below $126 would likely open the door to a deeper pullback toward the $118–$120 area, where earlier demand emerged.

On the upside, recovery attempts are likely to face resistance near $137–$140, followed by the major $145–$150 zone. Until price reclaims those levels and regains the 50-day moving average, rallies may struggle to gain traction.