Solana has dropped back to $124, extending a sharp decline that accelerated on December 1.
The latest 45-minute TradingView chart shows a clean breakdown from the $138–$140 area, followed by heavy selling volume as price plunged toward the mid-$120s. This pullback comes at a moment when market sentiment around SOL has turned increasingly negative and volatility rising to 10.54%, categorised as very high.
Long-Term Technical Outlook
Despite the correction, Solana remains inside a major technical structure highlighted by Trader Tardigrade. According to his weekly chart, SOL has been trading inside an Ascending Channel for more than 1,200 days, since May 2022.
The asset is currently resting inside the lowest sub-channel zone, a region that historically preceded significant upside moves each time price revisited it. The analyst notes that a strong momentum trigger from here could send Solana above $1,500, which marks the channel’s highest zone.
Short-Term Indicators and Sentiment
Technical indicators further explain today’s pressure on price. The 50-day SMA sits far above current levels at $164, while the 200-day SMA stands even higher at $174, showing that Solana remains in a broader downtrend on higher-time frames.
Meanwhile, the 14-day RSI at 38.8 points to neutral momentum leaning slightly bearish, suggesting that sellers still control the short-term direction.
Even though the near-term market bias is bearish, the price prediction model from your dataset still shows a potential rebound target at $141.30 (+11.8%), indicating traders expect some degree of mean reversion after the sharp selloff.
Critical Juncture and Support Levels
With sentiment at extreme fear, a steep correction on the intraday chart, and the price sitting at the lower boundary of a multi-year ascending channel, Solana now finds itself at a critical technical juncture.
If buyers defend the $120–$124 region, a recovery into the mid-$130s is possible. However, losing this support could open a move toward the channel’s deeper lower levels before any strong upward momentum can form again.