Solana Approaches Key Support at $130 After Pullback from Resistance

• Solana is testing key support at $130 after a pullback from $145–$150.
• Short-term recovery may depend on Solana’s ability to reclaim $138.
• Liquidity reset could signal upward momentum for Solana by early January.

Solana (SOL) is experiencing a significant pullback, with the price now hovering around $130, a key level that traders are closely watching. This price range has historically acted as a make-or-break point, where trend continuation or reversal often occurs. 

Currently, Solana’s price is under pressure as the broader market sentiment weakens, and sellers are more active. The price has recently been rejected from the upper boundary near $145–$150, pushing it toward the mid-range of a well-established horizontal range.

The 4-hour chart suggests that Solana is trading between $120–$125 support and $145–$150 resistance. If SOL cannot reclaim the $138 level, it risks slipping further toward lower support

According to analysts, the MACD indicator is attempting to stabilize after a bearish crossover, while the Stochastic RSI shows oversold conditions, indicating a potential short-term bounce. However, these indicators alone may not be enough to reverse the trend unless SOL breaks through significant resistance levels.

Liquidity Reset and Potential for Upside

Altcoin Vector has pointed out that Solana may be going through a liquidity reset phase similar to previous cycles. Liquidity index charts indicate that sharp resets have historically been followed by ignition phases, which led to multi-week upward trends. 

The firm suggests that forced selling pressure appears near its end, and the ecosystem is now cleaning out excess before a new cycle begins. A potential liquidity ignition could occur within the next few weeks, possibly starting by early January.

Ted Pillows, an analyst, has noted that the downside liquidity beneath Solana’s current price has largely been absorbed. His heatmap shows that there are stacked liquidity zones around the $140 mark, which are likely to be cleared in the near future. 

This suggests that the next major price movement could occur once the $140 level is tested. If Solana can hold or rebound at this level, it may set the stage for a new cycle of upward price movement.

Key Support Zone and the Path Forward

Solana’s price is now sitting near a crucial support level at $130, a zone that traders will be watching closely in the coming days. A failure to defend this support could signal further downside, potentially pushing SOL toward the $120–$125 region. 

On the other hand, a bounce at this level, coupled with improved liquidity conditions, could lead to a potential recovery. Traders are waiting to see whether Solana can hold these levels and regain momentum in the near term.

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.