Solana at a Crossroads: Bearish Pressure Tests $126 Support as Long-Term Pattern Eyes $160-$180 Rally

As of December 23, 2025, solana (SOL) finds itself at a critical technical juncture, presenting a complex yet potentially rewarding landscape for investors. The immediate price action is under bearish pressure, with SOL currently struggling to break above a descending resistance trendline. This short-term weakness suggests that a failure to decisively reclaim and hold the $126 level could open the door for a deeper corrective move, potentially targeting the $80 to $90 support zone. This near-term caution is highlighted by analyst Ali, who points to persistent selling pressure in the market. However, zooming out to the longer-term chart reveals a significantly more optimistic narrative. A large-scale cup-and-handle pattern—a classic and respected bullish continuation formation—is taking shape. The successful completion of this pattern's 'handle' phase and a breakout above its neckline could propel Solana on a substantial upward trajectory. Technical projections based on this pattern's measurements point to a potential price target range between $160 and $180. This creates a fascinating dichotomy: short-term traders are navigating bearish signals and key support tests, while long-term investors are watching for the confirmation of a major bullish pattern that could herald the next significant leg up. The coming sessions will be crucial in determining whether SOL succumbs to the immediate selling pressure or gathers the strength to fulfill its longer-term bullish potential, making the $126 level a key line in the sand for market sentiment.

Solana Price Eyes $160 as Bullish Reversal Signals Begin to Align

Solana stands at a pivotal juncture, with technical indicators painting a mixed picture. Short-term charts reveal bearish pressure, with SOL struggling below a descending resistance line. A failure to reclaim $126 could trigger a slide toward $80–$90. Yet, the long-term outlook remains optimistic, with a cup-and-handle pattern suggesting potential gains up to $160–$180.

Analyst Ali notes persistent selling pressure on the one-hour chart, marked by lower highs since early December. Resistance has solidified at former support levels of $138 and $134, compounding overhead pressure. While a bounce NEAR $123 is possible, historical patterns warn of sharp volatility unless the trendline is decisively broken.

Volume and market structure hint at accumulation, underscoring the dichotomy between near-term risks and longer-term bullish potential. The market’s focus now oscillates between downside protection and upside targets extending into 2026.

Solana Holds Critical Support Amid Institutional ETF Inflows

Solana (SOL) defends the $128 support level as analysts interpret its recent dip as a strategic 'Spring' shakeout rather than a genuine breakdown. The Wyckoff-inspired analysis suggests institutional players may be accumulating positions during this volatility.

Technical indicators point to a potential retest of the $119-$123 zone, which could reinforce SOL's bullish structure. Despite price weakness, Solana ETFs attracted $69 million in net inflows last week—a sign of sustained institutional confidence.

The token faces immediate resistance at $130, with sellers actively defending the $127 level. Market observers note that a decisive breakout above $130 could invalidate the current four-hour downtrend.

Solana's Q4 2025 Struggle: A 39% Drop Shadows Earlier Recovery

Solana (SOL) closed 2025 with its worst quarterly performance, plummeting 39.1% in Q4. The altcoin failed to break resistance at $150, languishing near $127 despite a 40.52% surge in daily trading volume to $2.87 billion. This decline eclipsed Q1’s 34.1% drop, reversing gains from Q2’s 24.2% rebound and Q3’s 34.9% rally—the year’s strongest quarter.

October’s 10.3% loss erased a 12.5% monthly gain, while November’s anticipated 6.8% rise collapsed into a 28.3% freefall. December’s traditional bullish momentum never materialized, leaving SOL vulnerable heading into 2026.

Solana Tests Key Support Level Amid Liquidation Pressure

Solana (SOL) faces a critical technical test as it hovers near $124.07, marking a 2.1% decline over 24 hours. Liquidation data suggests mounting pressure on long positions, with traders closely watching whether the asset can hold above this psychological threshold.

The pullback reflects broader market caution, though SOL’s resilience at current levels could signal consolidation before potential directional momentum. Market participants remain attuned to order book dynamics and spot ETF developments for catalysts.