Solana slides 16% as staking hits record highs – Will SOL bulls defend $126?
Solana began 2026 with a pointy 20% rally, however momentum light shortly on the twenty fifth of January. Value dropped practically 16% after failing to reclaim the $145 resistance, sliding towards the $126 zone.
Supply: TradingView
That rejection marked a transparent shift in short-term construction. Patrons misplaced management as SOL revisited prior help ranges.
The transfer highlighted how shortly sentiment flipped as soon as upside continuation failed.
Liquidation clusters body near-term danger
As of press time, Liquidation Heatmap knowledge confirmed two dominant clusters round $123–$126 and above $130. These zones prompt draw back liquidity remained lively earlier than stronger help emerged close to $117–$119.
Supply: CoinGlass
That setup stored strain on value motion. Any weak bounce towards $130 risked triggering contemporary sell-side liquidations. This left merchants cautious about chasing reduction rallies with out affirmation.
Open Curiosity rose as value weakened
CoinGlass knowledge revealed a disturbing development: Open Curiosity (OI) rose from $6.6 billion in late December to over $8.8 billion in January, however the value stored falling. This isn’t a bullish sign.
The rise in OI whereas the worth plummeted confirmed that bears have been controlling the market.
Supply: CoinGlass
As brief positions constructed up, the burden of the market’s bearish sentiment grew to become inconceivable to disregard. If open curiosity rises and the worth continues to tank, it’s clear the bulls are nowhere in sight.
Staking exercise climbed regardless of the drawdown
At the same time as Solana tumbled, staking exercise surged to an all-time excessive of 70%, with over $60 billion price of SOL staked. This confirmed robust conviction from long-term holders, signaling that traders have been dedicated to the community’s future.
Supply: Token Terminal
The Staking Ratio spoke volumes—this wasn’t hypothesis; it was pure conviction. As the basics quietly improved, the market’s power lay within the dedication of its holders.
The place SOL stands now
Solana didn’t defend the $126 stage, shifting focus towards the $118–$119 help zone. A decisive breakdown there might expose deeper draw back towards the $95–$98 area.
On the upside, bulls would wish to reclaim $145 earlier than any sustained restoration grew to become believable. Till then, value motion remained weak to liquidity-driven swings.
Closing Ideas
