SOL Faces Short-Term Pressure as Traders Reassess Momentum

• SOL trades below key EMAs, confirming bearish momentum and limiting near-term recovery
• Cooling futures open interest signals deleveraging, reducing upside despite active activity
• Persistent spot outflows suggest distribution, raising risk of deeper support tests

Solana’s price action has entered a critical phase as traders reassess short-term risk on the 4-hour chart. Recent market data shows SOL/USDT trading under pressure after failing to sustain earlier rebounds. Consequently, technical signals, derivatives positioning, and spot flow data now point to a cautious outlook. Market participants continue to monitor whether current support can stabilize price or trigger deeper losses.

SOL Price Trend Signals Growing Short-Term Pressure

On the 4-hour timeframe, Solana shows a clear corrective structure. Price trades below the 20, 50, 100, and 200 exponential moving averages. This alignment confirms short-term bearish momentum. 

Lower highs and lower lows continue to define recent price behavior. Moreover, the Supertrend indicator remains in sell mode, reinforcing downside bias.

SOL currently trades around the $127 region, which acts as immediate support. A stable hold above this zone could allow a brief recovery. However, sellers still control momentum while price stays below key EMA clusters. Hence, upside attempts face strong resistance near $131 and again near $134.

A stronger rejection from these levels may push SOL toward $124. Additionally, a decisive breakdown could expose the $121.7 support zone. This level represents a prior swing low and a key technical reference. A loss there would significantly weaken short-term structure.

Futures Open Interest Reflects Deleveraging Phase

Derivatives data adds context to recent price behavior. Solana futures open interest expanded sharply during earlier rallies. This pattern signaled aggressive leverage entering the market. Significantly, peaks in open interest often matched local price highs.

Subsequent pullbacks in open interest aligned with sharp price drops. These moves suggested long liquidations and rapid risk reduction. Currently, open interest has cooled to roughly $7 billion. This decline reflects traders trimming exposure after periods of elevated leverage.

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Despite this pullback, open interest remains higher than earlier market phases. Consequently, derivatives participation still appears structurally strong. However, reduced leverage limits short-term upside momentum.

Spot Flows Highlight Ongoing Selling Pressure

Spot market flows further confirm cautious sentiment. Recent data shows repeated net outflows from Solana. Inflows often accompanied price advances during previous rallies. However, negative netflows now align with price weakness.

On December 17, 2025, SOL traded near $127.9 while recording a net outflow near $3.5 million. This movement suggests ongoing distribution rather than accumulation. Additionally, sharp flow spikes highlight active trader positioning during volatility.

Technical Outlook for Solana (SOL) Price

Key levels for Solana remain clearly defined as the market trades through a short-term corrective phase.

• Upside levels: $129.30, $131.10, and $134.50 act as immediate resistance zones. A sustained breakout above this cluster could open a recovery move toward $140.30 and $142.00. These higher levels mark prior rejection areas and align with longer-term moving averages.

• Downside levels: $127.60–$127.00 stands as the first support zone. A loss of this area would likely expose $125.00–$124.00. Below that, $121.70 remains the major downside level, representing a prior swing low and a key structural support.

• Resistance ceiling: $134.50 remains the critical level to flip for a meaningful momentum shift. This zone aligns with the 100-period EMA and trend resistance. A reclaim above it would ease bearish pressure, though broader confirmation would still require a move above $142.

From a structural view, SOL continues to trade within a short-term descending channel. Price compression below the EMA cluster suggests energy is building for a directional move. However, current momentum indicators still favor sellers, keeping rallies corrective for now.

Will Solana Move Higher?

Solana’s near-term outlook depends on whether buyers can defend the $127.00 area and force acceptance above $131. A firm reclaim of $134.50 would improve recovery prospects and place $140–$142 back into focus. Stronger spot inflows and stabilizing futures open interest would likely support that scenario.

Failure to hold $127.00, however, risks a deeper move toward $124 and potentially $121.70. Until a clear breakout occurs, Solana remains in a pivotal zone where technical structure and participation flows will determine the next leg.