Solana (SOL) Price Prediction: Assessing the Potential for a New Year Trend Reversal

Solana is currently trading near $125 and continues to struggle for momentum as the market remains stuck in a tight range. As we highlighted in our previous analysis, the price has successfully held the $120 support level for over a month now, yet the bulls have not found the strength required to trigger a meaningful trend reversal. This lack of clear direction keeps the asset trapped between firm resistance at $145 and the established floor at $120 while Bitcoin also consolidates and the broader market experiences a seasonal slowdown. Because of this holiday lull, Solana has remained relatively stagnant. With that in mind, lets take a look at the latest SOL charts to see where the price could be headed in the coming days.

Our Solana Price Prediction Summary

• Solana remains in a consolidation phase between $120 and $145 as it waits for a fresh catalyst to break the downtrend.
• While a bullish RSI divergence suggests a potential relief rally, the price must reclaim the $145 level to confirm a trend reversal.
• Failure to maintain the critical $120 support could lead to a deeper correction toward the $110 mark in the coming weeks.

Analyzing the Charts

Current Price Action and Key Levels

Analyzing the 1-day charts reveals that Solana remains locked in a persistent downtrend characterized by an extended period of consolidation. The price has been steadily declining since its peak in September and we have yet to see any definitive signals of a trend reversal. While the $120 support level is currently holding firm, this floor remains vulnerable to a potential breakdown if selling volume increases in the coming sessions. On the resistance side, Solana faces an immediate hurdle at the $130 mark, although the $145 level is the more significant barrier that bulls must reclaim to shift the technical structure. Flipping $145 into support would likely provide the momentum needed to officially challenge the long-term downtrend and open the door for a broader recovery.

Indicators and Market Momentum

Another important factor to note on the daily timeframe is the emergence of a bullish divergence on the RSI. This technical signal suggests that while the asset has faced sustained selling pressure, the downward momentum may be reaching a point of exhaustion which often precedes a short-term relief rally. This divergence could provide the necessary push for bulls to challenge the $145 resistance level once again or it may simply result in continued sideways movement given the current low trading volume. Because the broader trend remains bearish, the market may require more significant buying interest to turn this technical signal into a sustained breakout rather than just another period of choppy price action. It is also why our current Solana price prediction is still leaning bearish.

Long-Term Outlook on the Weekly Chart

Lastly, switching to the 1-week timeframe provides a broader perspective on why the current $120 support is such a critical level for Solana. After this aggressive correction, the price could potentially rebound from this area because it has held firmly in the past and has served as a reliable bottom following previous pullbacks. However, we must also acknowledge that during the last major correction, the price dipped as low as $110, which makes a move toward that level a distinct possibility. If the bearish trend on the lower timeframes does not shift soon, we will likely visit the $110 mark next to test the strength of the buyers at that secondary floor.

Final Takeaway: What is Next for SOL?

Solana remains at a crossroads as it struggles to overcome a persistent downtrend that has lasted since September. While the $120 support level has proven resilient for over a month, the lack of significant buying volume and the broader holiday slowdown have prevented a meaningful breakout. The bullish divergence on the RSI offers some hope for a short-term relief rally toward $145, but we must remain cautious as a failure to hold current levels could lead to a deeper test of the $110 mark. As the market enters the new year, the price action in the coming days will be vital in determining whether Solana can finally flip its resistance and begin a sustained recovery.