Solana Price Analysis: Weakening Momentum and Support Zone
Solana’s price is currently hovering near the $126 support zone, having lost its bullish momentum due to falling volume and lower leverage, indicating that traders are taking a step back. The cryptocurrency’s price has been consolidating near the $126-$128 support zone after failing to rise above $145. According to recent data, spot volumes and derivatives activity have declined, suggesting lower speculative interest, although long-term institutional inflows and ETF demand remain supportive.
At the time of writing, Solana was trading around $130, up 1.4% on the day, although momentum appears to be weakening following a sharp rejection from higher levels. SOL is down about 10% in the last week, with prices fluctuating between $125 and $145, indicating increased volatility around key technical levels. Additionally, trading activity has declined, with spot volume falling 6.8% from the previous day to $5.62 billion, and open interest falling 3.61% to $7.60 billion, while futures volume fell 4.4% to $15.22 billion.
Institutional Flows and On-Chain Activity
Despite the short-term weakness, institutional demand continues to build in the background. Spot Solana exchange-traded funds (SOL) recorded net inflows of $2.92 million on January 21, according to SoSoValue data. Monthly net inflows have now exceeded $103 million, bringing cumulative inflows to around $869 million. Solana’s on-chain activity is still quite strong, with daily decentralized exchange volume almost doubling since the beginning of 2026, increasing from about $2.5 billion to over $5.6 billion.
The stablecoin market cap is still over $14 billion, indicating strong liquidity. Solana’s presence in real-world asset tokenization is also increasing, with the total value of real assets locked on the network exceeding $1.1 billion, ranking third behind Ethereum and BNB Chain. This expansion continues to be driven by institutional names such as BlackRock, Franklin Templeton, and Ondo. Upgrades like Firedancer improve network reliability, while discussions around regulatory clarity and payment-focused partnerships support longer-term adoption.
Technical Analysis of Solana Price
From a technical perspective, the dynamics have changed significantly. Solana failed to sustain gains above the $145-$150 area, where the price faced repeated rejections near the upper Bollinger Band. With this rejection, the current correction phase began. 
Solana daily chart. Photo credit: crypto.news
SOL’s decline below its 20-day moving average suggests a loss of short-term momentum. Growing bearish pressure is indicated by the daily relative strength index falling below the neutral 50s and into the lower 40s. The corrective pattern has persisted as recent attempts at recovery have stalled at lower highs. Short-term support lies between $126 and $128, an area consistent with the lower Bollinger Band and a previous consolidation zone. This zone is now under pressure.
A sustained daily close below $126 would likely open the door to a deeper pullback to the $118-$120 area, where earlier demand emerged. On the other hand, recovery attempts are likely to face resistance near $137-$140, followed by the main $145-$150 zone. Until price reaches these levels and rejoins the 50-day moving average, rallies could struggle to gain momentum. For more information, visit https://crypto.news/solana-price-126-support-weakening-momentum-2026/
