Solana Holds $119 Support as Volume Spikes; Eyes $145 but Leverage Raises Caution
Solana (SOL) rebounded to about $127.50 on Dec 29, 2025, marking a fourth consecutive daily gain after retesting the $119 support zone. A 161% surge in 24h trading volume to $4.15 billion signals heightened market participation. Technical indicators are mixed: ADX strengthened to 25.62, indicating rising trend momentum, while Chaikin Money Flow (CMF) remains negative at −0.13, showing ongoing selling pressure. On-chain leverage concentrations are notable — CoinGlass data highlights major liquidation clusters at $122.20 (support) and $130.40 (resistance), with roughly $114.12M in long leverage and $149.74M in short leverage concentrated near these levels. Traders on social channels cite upside targets of $144–$150 if SOL clears $130.4; immediate technical upside target is $145 (~13.8% above current). For traders: the strong volume-backed rebound suggests renewed interest and the potential for a short squeeze if SOL breaks above $130.4, but the high concentration of shorts and negative CMF increase the risk of volatile moves, stop-hunts, or renewed selling if resistance holds. Key levels to watch: $119 (support), $122.2 (liquidation cluster support), $130.4 (short concentration/resistance) and $145 (near-term target). Monitor volume, leverage unwind, and price action around these levels for clearer directional confirmation.
Neutral
The net effect on SOL’s price is neutral-to-cautiously bullish in the short term but carries significant risk. Supporting factors: a four-day rebound from the $119 support, a 161% spike in volume, and rising ADX suggest renewed buyer interest and momentum that could propel SOL toward the $145 target, especially if the $130.4 short concentration is breached and triggers a short squeeze. Offsetting factors: a negative Chaikin Money Flow indicates persistent selling pressure, and the sizable clustered leverage (more shorts than longs near $130.4) raises the risk of volatile reversals or stop-hunts if sellers defend resistance. Short-term traders may see opportunities for momentum trades on a clear break above $130.4 with tight risk management; failure to clear that level or a volume drop would likely keep downside risk intact toward $119–$122.2. Long-term implications are limited by these mixed signals — a confirmed breakout with sustained volume would be bullish, but failure to follow through keeps the outlook neutral and prone to sharp intraday moves.