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Solana News Update: SOL Breaks December Downtrend as Chart Signals Confirmed Recovery

SOL Reclaims Key Resistance as Technical Breakout Shifts Short-Term Trend

Written By : Yusuf Islam
Reviewed By : Shovan Roy

Solana showed early signs of a trend reversal after breaking out of a multi-week downtrend, according to a TradingView chart shared on X by analyst Kamran Asghar on December 30. It tracks SOL/USDT on Binance using the four-hour timeframe, signaling a confirmed breakout after weeks of capped recoveries.

At the time of capture, Solana traded at $124.51, marking a 0.17% session gain with controlled volatility following a prolonged consolidation phase. The candle recorded a high of $125.35 and a low of $123.54, reflecting steady participation rather than abrupt price swings. This move followed a gradual decline from the early December highs near mid-$140s, where repeated rallies failed to break through persistent resistance.

Solana Breaks a Multi-Week Descending Trend

The chart’s central feature is a descending trendline connecting lower highs from December 3 through December 27. That structure confirmed sustained selling pressure during the month as each rebound attempt stalled below resistance. Price compression increased into late December, hinting at a possible directional resolution.

Solana later pushed above the descending trendline near the $123–$124 area. The breakout zone appears clearly marked, with prices reclaiming the former resistance and holding above it across several candles. This behavior aligned with classic breakout confirmation patterns on lower timeframes.

Momentum expanded soon after the breakout. A strong bullish candle lifted SOL toward the $129–$130 range, followed by a brief pullback. Prices did not return below the former resistance, reinforcing the technical shift.

Market Structure Signals Controlled Strength

Analyst Asghar summarized the move with a direct observation. “Is the $Solana dip officially over? The chart says yes. Breakout confirmed,” he wrote alongside the chart. An upward projection on the image points to an early January price expansion; the projected path visually aligns with the $135–$138 zone. 

This level sits above the December consolidation range, reflecting the expectations of trend continuation rather than a short rebound. The chart suggests a transition from a downtrend to early recovery. Separate market data adds context to this technical picture. 

DeFiLlama also noted that after reaching the $233.8 zone earlier in the cycle, Solana did not collapse. Instead, price cooled into sideways movement, signaling digestion rather than exhaustion.

Macro Signals Add Caution to Crypto Markets

Macro developments remained prominent across crypto markets in 2025. Analysts tracked key economic signals to assess broader risk conditions affecting digital assets; yield curve reversion drew sustained attention here, inverting within the last three years and later entering a recovery phase. 

Short-term bond yields now sit below long-term yields. Historically, recessions often occur during periods of yield curve recovery rather than during yield curve inversions.

This backdrop aligns with broader macro concerns heading into 2026. Analysts warn that recession or stagflation risks could pressure crypto liquidity. Such conditions may explain why the U.S. Federal Reserve moved to cut interest rates to support economic activity.

Also Read:   Bitcoin Above $88,000, Ethereum Gains 0.97%, Solana Hits $125

Conclusion

Solana confirmed a technical breakout after reclaiming a key descending trendline on the four-hour chart. Prices held above former resistance as momentum expanded toward higher targets. Now, macro signals and yield curve shifts continue to shape the broader crypto risk conditions.

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