Solana price is holding the 120-125 demand zone, with momentum stabilizing and volatility compressing as long as this support remains intact. A reclaim of 135-145 would signal trend recovery and open upside toward 160-180 in Q1 2026, while a loss of 120 would keep SOL locked in consolidation. Solana is currently trading near the lower boundary of a descending channel, a structure that has guided price action since the Q4 2025 peak. The recent defense of the 120-125 demand zone is notable, as this area aligns with prior horizontal support and the lower Bollinger Band, suggesting downside pressure is being absorbed.
Price is also attempting to stabilize near the 20-day moving average, indicating early signs of balance after a prolonged corrective phase. The RSI is hovering near the 50 level, reflecting a shift from bearish momentum toward neutral conditions—often seen during basing phases. Volatility has compressed, with Bollinger Bands tightening, which historically precedes expansion moves. On the upside, SOL price faces immediate resistance near 135-145, where prior supply and the channel mid-range converge.
A clean breakout above this zone could open the path toward 160, with a broader Q1 2026 extension targeting the 175-180 region. Failure to hold above 120 would invalidate the setup and keep SOL range-bound. Solana’s price structure is beginning to stabilize, but confirmation remains key. As long as SOL continues to hold above the 120-125 demand zone, downside risk stays contained, and the current base-building phase remains valid.
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