Solana started 2026 with a strong 20% rally, but the momentum quickly faded on January 25th. The price fell almost 16% after failing to reclaim the $145 resistance, sliding towards the $126 area.
Source: TradingView
This rejection marked a clear change in the short-term structure. Buyers lost control as SOL revisited previous support levels.
The move highlighted how quickly sentiment reversed once further upside failed.
Liquidation clusters regulate short-term risk
At press time, Liquidation Heatmap data showed two dominant groups between $123 and $126 and above $130. These areas suggest that downside liquidity remained active before stronger support emerged around $117-$119.
Source: CoinGlass
This configuration maintained pressure on price developments. Any weak rebound towards $130 risked triggering further sell-side liquidations. This left traders cautious about continuing relief rallies without confirmation.
Open interest increased as price weakened
Data from CoinGlass revealed a worrying trend: Open Interest (OI) rose from $6.6 billion at the end of December to over $8.8 billion in January, but the price continued to fall. This is not a bullish signal.
The increase in OI as the price fell showed that the bears were in control of the market.
Source: CoinGlass
As short positions piled up, the weight of bearish market sentiment became impossible to ignore. If open interest increases and the price continues to fall, it is clear that the bulls are nowhere in sight.
Staking Activity Increased Despite Withdrawal
Even as Solana collapsed, staking activity reached an all-time high of 70%, with over $60 billion worth of SOL staked. This demonstrates strong conviction from long-term holders, signaling that investors were committed to the future of the network.
Source: Token Terminal
The stake ratio says it all: it wasn’t speculation; it was pure conviction. While the fundamentals gradually improved, the strength of the market lay in the commitment of its holders.
Where is SOL now?
Solana failed to defend the $126 level, instead focusing on the $118-$119 support zone. A decisive breakout could expose a deeper decline towards the $95-$98 region.
On the positive side, bulls would need to reclaim $145 before a sustainable recovery becomes plausible. Until then, price developments remained vulnerable to liquidity-related fluctuations.
