​​​​​​Solana weighs on major support

​Since the beginning of 2026, Solana (SOL) has traded under the weight of broader market pressures, with a recent sharp sell-off crystallising many of the risks that have been building beneath the surface.

​While the blockchain’s long-term narrative - centred on high throughput, low fees and ecosystem growth - remains intact, shorter-term price action has been dominated by macro volatility, positioning dynamics and shifts in risk appetite that have disproportionately impacted high-beta crypto assets like SOL.

​Solana entered the year in a cautious phase. Following a difficult end to 2025, prices had found temporary footing in the low-$120s, reinforced by selective institutional interest and sporadic inflows into Solana-linked structured products. That stabilisation, however, failed to gain sustained traction. Throughout January, SOL repeatedly stalled at resistance levels, setting the stage for vulnerability when external conditions deteriorated.

​The catalyst for the recent sell-off was rooted in a broad risk-off rotation across global cryptocurrencies. In this environment, traders and investors sought liquidity and moved capital into perceived safe havens, leaving speculative exposures under pressure. Solana’s heavy retail participation and high sensitivity to risk sentiment made it especially vulnerable, with sharp sell orders accelerating the decline.

​Leverage dynamics played a significant role in amplifying the downswing. In the lead-up to the sell-off, derivatives data indicated an accumulation of long positions as speculative traders anticipated a continuation of early-year bullish momentum.

​When prices failed to make new highs and instead breached key short-term support zones, a cascade of stop-loss orders was triggered. As funding rates deteriorated, leveraged longs were systematically liquidated. The forced unwinding of positions not only accelerated selling pressure but pushed prices down at a speed that spot-market demand alone could not absorb.

​Institutional flows also reflected the shift in sentiment. Although Solana-linked investment products and narratives around future exchange-traded fund (ETF) eligibility had attracted attention earlier in the year, the sell-off coincided with measured outflows from structured Solana exposure vehicles.

​In contrast to assets perceived as safer or more established - like Bitcoin or Ether (ETH) - SOL did not benefit from institutional dip-buying during the initial phase of the rout. This left the token exposed to continued downside momentum as macro conditions worsened.

​Sector-specific sentiment factors contributed an additional layer of pressure. On-chain activity, which had cooled since late 2025, showed further softening in decentralised exchange volumes and speculative trading on Solana’s network. Some analysts interpreted the divergence between strong infrastructure metrics (such as throughput capacity and developer activity) and weaker transactional demand as indicative of an ecosystem under strain. While not suggesting a fundamental breakdown, this disconnect reinforced the technical narrative of waning near-term demand, which can weigh on price in a risk-off climate.

​Taken together, Solana’s recent sharp sell-off highlights a market in transition. Short-term price action has been dominated by macro shocks and leverage dynamics, while longer-term narratives around adoption and network resilience have provided a floor of support, for now at least.

​Whether SOL can build on its recent recovery without renewed selling pressure will depend on whether broader financial market conditions continue to stabilise and whether institutional and retail confidence can regain traction beyond tactical re-entry.

​For now, the episode serves as a reminder that even robust ecosystems with strong fundamentals can be buffeted heavily by shifts in sentiment, liquidity and risk appetite - particularly when leverage is high and macro volatility returns.

​Solana bearish scenario:

​SOL is trading close to its major $95.33 - $93.07 support zone which consists of the early February 2024 and April 2025 lows.

​In case of this area giving way, the 3 - 19 January 2024 lows at $87.0- $85.09 area expected to be reached and perhaps also the January 2024 trough at $78.93. Failure there might engage the psychological $50 region.

​Solana bullish scenario:

​While the$95.33 - $93.07 support area holds on a daily chart closing basis, a recovery attempt may be seen. For this to happen a bullish reversal would need to take SOL to above its 1 February high at $106.53 in the first instance.

​In this case the December 2025 low at $116.94 may be reached but, together with the November and early December lows up to $133.73, may cap the upside.

​​Short-term outlook:

Bearish while below $106.53, targeting the $95.33 to $93.07 area

​​Medium-term outlook:

Neutral while above $95.33 - $93.07; a fall through this area would be bearish, though 

Solana weekly candlestick chart