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Solana Clings to $123–$129 Support as Technical Breaks Raise Downside Risk

Robust on‑chain growth plus institutional demand contrast with weakening market structure at a key technical floor.

Overview

  • SOL is hovering around $126–$130 after failing to hold the mid‑$140s, with breaks below short‑term EMAs, an ascending trendline and the Point of Control signaling vulnerability toward $117 if value‑area support gives way.
  • Derivatives stress accelerated the drop, with CoinGlass tallying nearly $390 million in liquidations on Jan. 20, most of them longs, as open interest and leverage declined.
  • Analysts frame $120–$127 as the decisive zone, warning that a sustained loss could expose $110–$100 and, in deeper scenarios, the $75 area, while a hold and reclaim of $137–$145 would reopen $150–$160.
  • Institutional and on‑chain signals remain constructive, including $2.92 million in Jan. 21 spot‑ETF net inflows (over $103 million for the month), whale accumulation of roughly 48 million SOL since late November, and exchange balances near two‑year lows around 26 million tokens.
  • Ecosystem momentum continues with Circle’s Gateway for chain‑abstracted USDC live on Solana, Ondo’s tokenized stocks and ETF platform expanding, and planned upgrades such as Alpenglow and Firedancer, as Forward Industries disclosed a 6.97 million SOL treasury with staking rewards compounding.