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Solana started 2026 with a sharp 20% rally, but momentum faded quickly on the 25th of January. Price dropped nearly 16% after failing to reclaim the $145 resistance, sliding toward the $126 zone.
Source: TradingView
That rejection marked a clear shift in short-term structure. Buyers lost control as SOL revisited prior support levels.
The move highlighted how quickly sentiment flipped once upside continuation failed.
Liquidation clusters frame near-term risk
As of press time, Liquidation Heatmap data showed two dominant clusters around $123–$126 and above $130. Those zones suggested downside liquidity remained active before stronger support emerged near $117–$119.
Source: CoinGlass
That setup kept pressure on price action. Any weak bounce toward $130 risked triggering fresh sell-side liquidations. This left traders cautious about chasing relief rallies without confirmation.
Open Interest rose as price weakened
CoinGlass data revealed a disturbing trend: Open Interest (OI) rose from $6.6 billion in late December to over $8.8 billion in January, but the price kept falling. This isn’t a bullish signal.
The increase in OI while the price plummeted showed that bears were controlling the market.
Source: CoinGlass
As short positions built up, the weight of the market’s bearish sentiment became impossible to ignore. If open interest rises and the price continues to tank, it’s clear the bulls are nowhere in sight.
Staking activity climbed despite the drawdown
Even as Solana tumbled, staking activity surged to an all-time high of 70%, with over $60 billion worth of SOL staked. This showed strong conviction from long-term holders, signaling that investors were committed to the network’s future.
Source: Token Terminal
The Staking Ratio spoke volumes—this wasn’t speculation; it was pure conviction. As the fundamentals quietly improved, the market’s strength lay in the commitment of its holders.
Where SOL stands now
Solana failed to defend the $126 level, shifting focus toward the $118–$119 support zone. A decisive breakdown there could expose deeper downside toward the $95–$98 region.
On the upside, bulls would need to reclaim $145 before any sustained recovery became plausible. Until then, price action remained vulnerable to liquidity-driven swings.
Final Thoughts
