Solana’s sharp January rally reversed dramatically after a failed attempt to break the $145 resistance, leading to a 16% drop toward $126. Despite the price decline, bearish pressure intensified as Open Interest rose to over $8.8 billion, while on-chain data revealed a contrasting surge in staking, hitting a record 70% of supply.
Solana began 2026 with a strong 20% rally, but momentum faded sharply on January 25th. The price fell nearly 16% after failing to reclaim the $145 resistance, sliding toward the $126 zone.
That rejection marked a clear shift in short-term market structure. Buyers lost control as SOL revisited prior support levels.
Liquidation data showed dominant clusters around $123–$126 and above $130. This setup kept pressure on price action, with stronger support potentially emerging near $117–$119.
A concerning trend emerged as Open Interest rose from $6.6 billion to over $8.8 billion while the price fell. “This isn’t a bullish signal,” the data suggested, indicating bears were controlling the market.
In a contrasting on-chain development, staking activity surged to an all-time high of 70%. Over $60 billion worth of SOL was staked, signaling strong conviction from long-term holders in the network’s future.
Solana ultimately failed to defend the $126 level, shifting focus toward the $118–$119 support zone. A breakdown there could expose deeper downside toward $95–$98.
On the upside, bulls would need to reclaim $145 before any sustained recovery became plausible. Until then, price action remained vulnerable to liquidity-driven swings.
