Solana Downtrend Persists as Price Stabilizes Around $120 Compression Zone

Key Insights

• Solana trades near $123 as analysts watch the $120 level for support or further downside risk.
• The technical structure remains weak with lower highs and lows since the drop from the $200 peak.
• Nine straight days of ETF inflows suggest continued capital entry despite ongoing price pressure.

Solana ($SOL) continues to face downward pressure, with the cryptocurrency remaining in a downtrend despite some market activity. The current price of Solana sits at around $123.79, with a 24-hour trading volume of over $5.3 billion.  Experts are closely watching how the price behaves in this area, as it represents a potential turning point or further decline.

Solana Action and Key Level for Solana’s Future Price

Since reaching its peak above $200, Solana has seen a consistent decline, losing approximately 60% of its value. The most recent price movement has been characterized by lower highs and lower lows, with no clear reversal in sight. The market has shown little support as the price falls towards key support levels.

Analyst Cypherpunkgod highlighted, “If $120 holds and we reclaim $140 with conviction, I’ll respect it and look higher toward $155–160,” suggesting that a bounce from this level may provide some optimism. However, there is still uncertainty regarding the near future.

The $120–125 range is viewed as a critical compression zone, where the Solana price is currently stabilizing. This level is crucial as the market decides to serve as a support base, or if further selling pressure pushes the price lower. The analyst added that the market is assessing whether buyers will step in at this level or whether liquidity will weaken.

ETF Flows Suggest Accumulation Despite Price Weakness

In this case, the next support levels are expected at $110 and $100, which would mark further retracements for the cryptocurrency. These areas may become important if selling pressure intensifies

Despite the recent price decline, capital inflows into Solana remain strong. According to Junaid Dar, over the past nine consecutive days, Solana has seen positive ETF flows, indicating that investors are still actively entering the market. This suggests that the current price action may be more about accumulation rather than capitulation.

These areas may become important if selling pressure intensifies. While the price weakness persists, these inflows indicate that Solana may have a strong foundation for future growth if market conditions shift. If the broader market turns bullish again, Solana may benefit from this accumulation and could be strong to lead any upcoming upward movement in the cryptocurrency market.