SOL remains supported at a critical level as trading volatility intensifies

The Solana market experienced a positive turn on December 29, completing its fourth consecutive winning session after finding support at a crucial technical zone. With a 2.45% increase, SOL reached levels close to $127.5, reflecting a renewed sentiment among market participants. Trading activity responded strongly: the 24-hour trading volume jumped 161% to reach $4.15 billion on CoinMarketCap, revealing significantly increased trader participation.

$119 Zone: The support that defines the next move

Solana’s rebound centered around a successful test of the support at $119, a level that had acted as a consistent reversal line during recent sessions. From this technical perspective, a sustained hold above this floor could facilitate a move toward $145, representing a potential gain of approximately 13.8%. The daily chart, observed via TradingView, showed that the price respected this critical zone.

The price structure suggests multiple bullish scenarios. Some analysts on X platforms project that SOL could reach $144 or even $147 in the short term, while more aggressive predictions consider a breakout of $150 in the coming days. However, these projections coexist with contradictory technical signals that warrant caution.

Technical indicators: Limited strength due to selling pressure

The Average Directional Index (ADX) reached 25.62, brushing the decisive threshold of 25 that generally indicates the start of a directional trend with strength. This suggests that a sustained movement could be forming in SOL. However, this bullish reading is counterbalanced by the Chaikin Money Flow (CMF), which remains in negative territory at -0.13, indicating that selling pressure dominates the market and that buying interest at current prices remains weak.

Leverage trap: Where risks are concentrated

Despite the narrative optimism, CoinGlass data reveal a more complex reality. Liquidation levels show concentration of leveraged positions at two key points: $122.2 (support) and $130.4 (resistance). In these zones, there are $114.12 million in long leveraged positions versus $149.74 million in shorts, indicating a clear bearish bias among intraday traders. This distribution suggests many participants are betting that SOL will not surpass $130.4 in the short term, creating a potential danger zone for unprotected bullish positions.

What traders should watch

Solana’s behavior in the upcoming movements will critically depend on whether the sustained support manages to consolidate above $119. The combination of mixed indicators, expansive volume but persistent selling pressure, and uneven leverage distribution creates a landscape where both bulls and bears find valid arguments. The real test will come when SOL attempts to break through the resistance at $130.4, where both technical pressure and high short leverage converge, potentially triggering explosive moves in either direction.