- SOL retests its multi-year trendline at $127 after a sharp 6% daily drop.
- $100M institutional inflows and 1.2M daily users signal strong fundamentals.
- Breakdown risks $100, while a bounce could ignite a rally toward $150–$178.
In the volatile world of cryptocurrency, few assets command as much attention as Solana ($SOL). As of December , 2025, the blockchain’s native token is teetering on the edge of a pivotal support trendline that has proven resilient since late 2023. Trading at approximately $127.30 on Binance’s perpetual futures market, SOL has shed over 6% in the past 24 hours, extending a broader November decline that saw it close the month at $133. finance.yahoo.com This latest dip mirrors a wider market correction, with Bitcoin and Ethereum also nursing losses amid macroeconomic jitters and regulatory whispers.Technical analysts are zeroing in on the chart, where SOL’s price action draws a clear ascending trendline from November 2023 lows around $16.
Long-Term Trendline Signals a Decisive Turning Point
This line, connecting key troughs, has ignited multiple rebounds—most notably a surge to $294 in early 2025 before the current pullback. The current test at $127.30 echoes past bounces, including a 61% rally from $11.97 in November 2023 and a 50% climb from $16.11 earlier this year. bravenewcoin.com Volume spikes at these levels suggest institutional interest, but failure to hold could open the floodgates to $100—a psychological floor not breached since mid-2024.coinpedia.orgFundamentally, Solana remains a powerhouse.
Fundamentals Stay Strong Despite Technical Weakness
November brought $100 million in net inflows to SOL-focused funds, underscoring investor confidence in its high-throughput ecosystem despite network hiccups in the past.finance.yahoo.com The upcoming Breakpoint conference and potential spot ETF approvals could catalyze a reversal, with liquidity clusters forming bullish wedge patterns hinting at a push toward $150-$165 if support holds. bravenewcoin.com On-chain metrics shine brighter: daily active users topped 1.2 million last week, dwarfing Ethereum’s DeFi dominance in speed and cost, while meme coin frenzies on Solana continue to drive transaction volumes.Yet, risks loom large.
Risk Factors and Bearish Scenarios to Watch
A descending channel since March 2025 caps upside, and with global equities faltering, correlated assets like SOL could test $113 lows if sentiment sours further. cryptopolitan.com Analysts at Changelly forecast December highs of $140.84, but warn of volatility tied to ETF flows and Federal Reserve signals.changelly.com For traders, this is binary: a close above $130 validates the uptrend, targeting $178 by year-end; below $125 invites shorts toward sub-$100 territory. coindcx.comSolana’s story is far from over. Built for scalability in a multi-chain future, $SOL’s resilience could turn this test into a launchpad. As the market braces for December’s twists, eyes remain glued to that trendline—history suggests it’s more than just a line in the sand.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
