Solana Tests $125 Range: Bearish Structure Targets Lower Liquidity Zones - What’s Next for SOL?

Solana's price action just hit a critical inflection point. The $125 range isn't just a number—it's a battleground where bullish conviction meets a bearish structural setup eyeing deeper liquidity pools.

The Technical Crucible

SOL's current dance around $125 isn't happening in a vacuum. Market structure suggests a push toward lower liquidity zones, a classic move to sweep stops and gather fuel for the next leg. It's the market's way of cleaning house before a potential reversal—or a further drop. Watch the order flow here; it tells the real story.

Liquidity Hunt in Progress

This isn't random volatility. The bearish targeting of lower zones is a calculated play, a liquidity grab that often precedes significant moves. For traders, these are the moments that separate noise from opportunity. The key question: is this a shakeout or the start of a deeper correction?

Remember, in traditional finance, they'd call this 'price discovery' and charge you a management fee for the privilege of watching. In crypto, you get the front-row seat for free—volatility included.

Where does SOL go from $125? The chart is setting the stage. The next few candles will reveal whether the bulls can defend this line or if the bears get their feast. One thing's certain: complacency has no place here.

Solana price is drawing renewed market attention as it trades NEAR the $124–$125 region, with market watchers flagging short-term downside risks even as longer-term recovery scenarios begin to emerge. While SOL has avoided a sharp breakdown so far, its broader structure remains fragile, keeping traders focused on key levels below current price.

After a volatile end to 2025, solana continues to trade well below its all-time highs, reflecting a prolonged corrective phase. Analysts now point to a mix of bearish short-term signals, including a descending channel and liquidation clusters, alongside longer-term accumulation zones that could shape price action in 2026.

Descending Channel Keeps Solana Price Under Pressure

From a technical perspective, Solana remains trapped inside a clearly defined descending channel, as highlighted by analyst Shango Trades. His chart shows price continuing to print lower highs and lower lows, a structure typically associated with trend continuation rather than reversal.

Solana remains capped inside a descending channel, with lower highs and lower lows keeping short-term pressure intact. Source: Shango Trades via X

According to Shango, SOL must decisively exit this channel to shift momentum. Failure to do so increases the likelihood of a MOVE towards the $110 region, which aligns with the lower boundary of the channel. Until a breakout occurs, upside attempts risk being sold into, keeping short-term sentiment cautious. This descending structure explains why recent rebounds have lacked follow-through, despite broader market stabilization.

Liquidation Clusters Signal Risk Below $120

Adding to the bearish short-term outlook, derivatives data shows large liquidation clusters sitting below the $120 level. The heatmap suggests that a significant amount of long leverage is concentrated in this area, increasing the probability of a downside sweep.

Large liquidation clusters below $120 highlight elevated downside risk, with Leveraged long positions vulnerable to a sharp sweep. Source: Ted Pillows via X

Ted Pillows noted that retail traders appear heavily positioned on the long side near current prices, creating incentives for market makers to push Solana price lower and trigger liquidations. Such behavior often results in sharp, fast moves rather than gradual declines.

If SOL slips below $120 with momentum, these liquidation pockets could accelerate downside pressure, reinforcing the bearish channel structure already in place.

Short-Term Weakness Meets Long-Term Forecast Optimism

While near-term charts lean bearish, longer-term outlooks introduce a contrasting narrative. Analyst Jesse Peralta shared a solana price prediction for 2026, outlining a scenario where SOL gradually recovers over the year if key macro and technical conditions are met.

Despite near-term weakness, longer-term projections outline a potential recovery path for Solana into 2026 if key technical conditions align. Source: Jesse Peralta via X

His projections show quarterly ranges expanding from $130–$200 in Q1 to potential highs near $400 by Q4, driven by catalysts such as EMA reclaim, regulatory clarity, and broader ecosystem growth. However, these projections assume that current corrective phases eventually resolve into accumulation rather than deeper structural breakdowns. This highlights the disconnect between short-term risk and longer-term opportunity currently facing SOL.

$78 Identified as Key Accumulation Zone

Reinforcing the idea that downside may still be required before a sustainable recovery, analyst StefanB stated that he only begins accumulating solana price near $78, aligning with the 0.786 Fibonacci retracement on the higher timeframe.

The chart suggests that price has little technical reason to front-run this level, particularly given the broader corrective structure. The $78 zone also coincides with prior consolidation and historical demand, making it a logical area for long-term buyers to step in if reached.

The $78 level is highlighted as a key accumulation zone, aligning with a major Fibonacci retracement and prior demand. Source: StefanB via X

Final Thoughts: Can Solana Price Reclaim $200 in 2026?

Solana’s path towards higher levels in 2026 remains highly dependent on how price resolves its current corrective phase. In the near term, downside risks remain active as long as Solana price continues to trade within the descending channel and below key liquidity levels. A loss of support near $120 WOULD keep pressure on price, with $110 and deeper demand zones still in focus before any durable trend shift can occur.

Solana current price is $124.89, down -0.45% in the last 24 hours. Source: Brave New Coin

That said, longer-term projections suggest a different story may unfold if Solana successfully transitions from correction into accumulation. Solana price prediction pointing towards a potential move back above $200 in 2026 hinge on several conditions being met, including structural stabilization, reclaimed moving averages, and broader market support. Until those confirmations appear, any upside scenario remains conditional rather than guaranteed, positioning Solana price as an asset where patience and level confirmation matter more than anticipation.