Solana ( SOL ) continues to be under pressure as it trades below a key short-term support zone, leaving downside risk in the short term.
Despite positive infrastructure news such as Coinbase extending SOL support beyond its Base, price movements remain dominated by liquidation and liquidation levels, amidst weak momentum and repeated failures to break above higher price levels.
- SOL is below short-term support, fluctuating mainly in the 122–145 USD range and leaning towards a decline.
- on-chain data shows that two "whales" are placing leveraged bets in opposite directions: one Longing is losing money, while the other Short is making a profit.
- High liquidation is found at $121–122 (below) and $128.5–133 (above), which could drive short-term volatility.
Solana is being compressed in the $122–$145 range as sellers maintain the upper hand.
In recent sessions, SOL has mostly traded sideways in the $122–$145 range but has been trading below short-term support, indicating that buying pressure is not yet sufficient to create a sustainable uptrend.
On December 24th, SOL continued to face pressure as the price remained below a key short-term support zone. Repeated unsuccessful attempts to regain higher levels weakened buyer confidence and reinforced the risk of a short-term decline.
Despite positive ecosystem updates, the market structure reflects caution, with intraday fluctuations dominated by liquidation. This price "compression" causes traders to focus on nearby liquidation clusters rather than pursuing a clear trend.
In terms of indicators, the SOL 's RSI hovers near the neutral 40 mark, reflecting weak momentum and indecision about direction. The MACD remains below the signal line, indicating continued downward pressure and no clear reversal signal has yet appeared.
Whales may determine the next major price swing for Solana.
on-chain data reveals two prominent "whale" wallets holding leveraged SOL positions in opposite directions, creating a notable divergence in price expectations.
According to data from Onchain Lens, one post showed a clear contrast between two whale addresses with large leveraged positions with SOL.
Whale “0x0e4” maintains a 20x leveraged Longing SOL position and is recording losses exceeding $5.78 million. Additionally, 20x leveraged Longing BTC and 10x leveraged HYPE positions bring the total unrealized losses to nearly $8.5 million.
Conversely, the whale "0x35d" held a profitable Short SOL 20x position worth approximately $11 million. This position was gradually reduced, implying controlled profit-taking rather than aggressive risk-aversion. This same whale also held leveraged BTC and ETH positions, with total profits exceeding $27.7 million.
Coinbase expands SOL deposits/withdrawals via Base to reduce chain transfer friction.
Coinbase announced support for direct SOL deposits and withdrawals via the Base network, connecting Solana to Ethereum liquidation on Base without relying on third-party bridges.
Around the same time, Coinbase announced support for direct SOL deposits and withdrawals through the Base network. This integration aims to create a smoother asset flow between Solana and Base.
Notably, users can utilize SOL as an ERC20 Token in native decentralized finance ( DeFi ) applications on Base. The market highlights the benefits of reduced transaction friction and increased cross-chain accessibility.
However, availability remains limited in certain jurisdictions, meaning the immediate impact on a global scale may not be uniform. Therefore, this positive infrastructure factor is not enough to immediately reverse the price structure, as liquidation continues to drive short-term volatility.
Liquidation is heavily concentrated in the $121–$133 range and could "pull" prices down.
The 48-hour liquidation map shows large clusters of liquidation at $121–$122 below and $128.5–$133 above, making SOL highly reactive at these levels as momentum shifts.
The 48-hour liquidation heatmap data shows heavy liquidation on the downside, concentrated between $121–$122. This is an area with many leveraged Longing positions that are easily subject to forced liquidation, causing the price to tend to be pulled down until this liquidation is cleared.
On the upside, liquidation is concentrated near $128.5–$129.5, with secondary levels around $131.5–$133. These areas reflect clusters of stacked Short positions, which could become magnets for price increases when a momentum reversal or a sufficiently strong technical rebound occurs.
Before a clear catalyst emerges, price reactions remain relatively muted, and corrective pullbacks often lack the momentum to follow. This increases the importance of monitoring price reactions around the nearest liquidation zones.
Scenario to watch: the $122 mark will determine whether there is a risk of a drop to $117 or a return to stability.
Price behavior around $122 is a key point: holding above that level could help stabilize the market, while a significant loss could pave the way for a decline to $117; conversely, reclaiming $125 could improve momentum.
In the short term, the market is paying particular attention to the area around $122 as this is the "boundary" for the possibility of a continued decline to $117 or the formation of a stable base. If selling pressure persists and liquidation below this level continues to be targeted, the weakening scenario will be reinforced.
On the positive side, a sustained reclaim above $125 could shift the focus to higher- liquidation areas, while also opening the possibility of targeting near larger resistance zones, including the $145 mark in the current trading range.
Frequently Asked Questions
What price level is most important for Solana in the short term?
The area around $122 is a key level. If the price continues to fall below short-term support and significantly loses this area, the risk of a drop to $117 increases; if it holds, the SOL could stabilize within the current range.
What does whale data say about the SOL trend?
The data shows two whales placing bets in opposite directions: one Longing SOL 20x wallet is incurring significant losses, while a Short SOL 20x wallet is profitable and gradually reducing its position. This divergence implies that volatility can be triggered when leveraged positions shift.
What impact will Coinbase's support for SOL via Base have?
Integration facilitates SOL deposits/withdrawals via the Base and supports the use of SOL as ERC20 in DeFi on the Base, reducing chain switching friction. However, due to jurisdictional limitations, the immediate impact on price may not be strong enough to reverse the market structure.
Which liquidation could cause significant volatility in SOL ?
Below, the high liquidation at $121–122 suggests a risk of liquidation of leveraged Longing positions. Above, the clusters of $128.5–129.5 and $131.5–133 could Vai as "price absorbers" when momentum shifts to an upward direction.
