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Solana Hovers Above $120 as Liquidation Risks Mount and ETF Inflows Persist

Crowded leverage near key levels meets weakening on‑chain use, with ETF demand and a Base on‑ramp tempering downside.

Overview

  • SOL is trading in the low‑$120s as the $120 support remains the key line in the sand, with multiple analysts warning of a slide toward $110–$100 if it breaks.
  • CoinGlass data highlight dense liquidation clusters around $121–$123 and $128.5–$133, with roughly $90 million in long positions cited as vulnerable.
  • U.S. spot Solana ETFs continued to attract December inflows, signaling institutional accumulation despite price weakness and rangebound trading.
  • On‑chain activity has softened, with Nansen reporting drops in transactions, active addresses and fees, and separate reports noting active users under one million in Q4.
  • Liquidity supports include a record stablecoin supply near $16.4 billion on Solana and new Coinbase support for SOL deposits and withdrawals via the Base network.