Solana (SOL) price is in a major turbulent phase, stuck in a tight technical range between $122 and $145. As whales ramp up leveraged positions, the market awaits a decisive move, holding its breath for what's to come.
For several weeks now, the native token of the Solana blockchain has been trading within a well-defined horizontal channel. This phase of sideways consolidation reflects the current indecision among investors. On one side, the bulls are attempting to defend the critical support level of $122, while the bears systematically reject any attempt to break above $145.
Recently, SOL was even briefly traded below the $122 mark, signaling increased selling pressure. This retracement concerns technical analysts, as a weekly close below this level could invalidate the medium-term bullish structure and trigger a more severe correction toward $110, or even $100. The market is currently in a waiting phase, watching for a catalyst to initiate the next directional move.
According to trader Killa, SOL is positioned as the altcoin with the highest chance of a bounce: “If it loses $100, SOL is potentially finished.” Solana is therefore at a crucial moment, and without a bounce on the $100 support, a drop to $50 is almost certain. But before that, Killa anticipates a 10 to 20% bounce in SOL.
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What makes the current situation particularly explosive is the on-chain activity of large wallets. Recent data indicates a marked divergence in whale strategies. The massive use of leverage in derivatives markets suggests that major players are positioning themselves for a violent move, but don’t agree on the direction.
This accumulation of leveraged positions creates a high risk of cascading liquidations. If the price drops sharply, long positions will be liquidated, accelerating the decline (long squeeze). Conversely, a sudden bounce could trap short sellers (short squeeze), propelling the price toward the upper end of the range. Implied volatility is increasing, and the market appears ready for an imminent volatility spike.
For traders, monitoring key levels is paramount in the coming days. Technical analysis suggests two likely outcomes to this congestion:
In a bearish scenario, the 3-day order block offers a last line of defense and launchpad for a SOL bounce. This zone between $100 and $112 is therefore crucial for the token.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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