Solana’s been struggling lately. It’s slipped down to about $127.27 after a sharp 7% drop yesterday. Traders are now watching the $129.50 level closely since it’s a pretty important support area and also lines up with the 38.2% Fibonacci retracement.
SOL got rejected at $144.60 last week and then pulled back in what looks like a three-wave correction pattern. If $135.50 doesn’t hold, there are more support levels below at $132.84, $130.17, and $126.47. Traders are hoping for a bounce back toward resistance at $142.60 and $144.60.
What’s interesting is the open interest actually rose 1.7%, adding about $12.5 million in leveraged positions. That shows traders are still engaged despite the pullback. Plus Solana ETFs saw $5.3 million in net inflows on Friday, according to Farside Investors, which is a good sign.
Some analysts are spotting an inverse head and shoulders pattern within a descending wedge. If that plays out, SOL could potentially target $160. But first it needs to break above $142.60 convincingly. Corporate treasuries have also been stacking SOL, holding over 16 million tokens now in 2025, which provides long-term support even during short-term volatility like this.
Conclusion
Solana’s price action at critical support levels combined with rising open interest and ETF inflows suggests potential for recovery if resistance breaks, though immediate downside risks remain if key supports fail.
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