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Solana rebounded nearly 8% after dropping below $100, showing early signs of buyer strength.
The $120 level is the main resistance that will decide the next price direction.
Trading volume remains high, but derivatives data show cautious and neutral sentiment.
Solana (SOL) has started to recover after facing a heavy sell-off earlier this week. The price had fallen below the important $100 level, creating fear among traders and investors. However, buyers quickly stepped in and pushed the price back into the low triple-digit range.
SOL was trading near $100 to $105 at press time, showing a 8% rebound from its recent weekly low. This recovery happened while the wider crypto market was also trying to stabilize after a period of strong selling pressure.
The drop below $100 was driven by a broader risk-off mood across digital assets. Many traders reduced their positions, and some leveraged positions were forced to close, increasing selling volume.
Also Read: Is Solana a Good Investment in 2026? Buy, Sell, or Hold Explained
The $120 price zone has now become the most important level to watch. Analysts see this area as a key resistance point that could decide the short-term trend for Solana. A clear move above $120, followed by stable trading, would signal that bullish momentum is returning. If this happens, price targets between $128 and $150 may come back into focus.
On the other side, failure to break above $120 could expose Solana to another wave of selling. Technical studies show that if the price falls below current support levels, the next downside targets may be in the $70 to $80 range.
Many traders are waiting for confirmation before entering new positions. The market is now in a wait-and-see phase, with attention fixed on whether buyers have enough strength to push the token higher.
The recent bounce has been supported by higher trading volume, which often shows stronger interest from market participants. On-chain data points to some accumulation during the dip, meaning certain investors used the lower prices as a buying opportunity. At the same time, derivatives data show mixed signals. Open interest has remained mostly neutral, suggesting that leverage is not building up aggressively in either direction.
This balance between spot buying and controlled leverage reduces the chance of sudden liquidations in the short term. Still, if the price falls below major support zones again, forced selling could return quickly. Market observers are also watching funding rates and futures positioning to see if sentiment is slowly shifting back toward positive territory.
The recent market sell-off had its greatest impact on institutional trading. Multiple large funds reported that their investor customers withdrew millions of dollars, creating additional market stress that drove SOL below $100.
The market has reached a point where both exchange balance data and fund flow trends are stable. The current situation indicates that the most severe selling pressure has stopped.
Institutional inflows to the market will create conditions that help it reach the $120 price point. Outflows from the market will create obstacles that prevent it from maintaining its recovery.
Solana’s future depends on its network development, which is a major factor behind its current price performance. Its ecosystem continues to be developed through system enhancements that will increase operational efficiency, performance, and reliability.
Developers are working on upcoming features to help them achieve their goals of increasing transaction capacity and reducing network traffic.
Performance improvements create an optimistic future outlook, while the present market situation drives short-term price changes. The token remains vulnerable to disruptions despite receiving major technical upgrades.
Traders are cautious, relying on technical indicators instead of fundamental market data.
Also Read: Solana vs Ethereum: Why SOL is Gaining More Momentum in 2026
SOL’s support level currently exists at the mid-$90 area, while the resistance level remains strong between the $120 and $125 range. A daily close above $120.88 with strong volume would confirm a shift back to bullish control. The market will enter a phase of deeper correction if it breaks through the $95 to $96 support level.
Solana has recovered from its sell-off, which indicates positive movement for the market. The market currently stands in a vulnerable position.
1. Why did Solana price fall recently?
Solana dropped due to a wider crypto market sell-off, driven by risk-off sentiment and large fund outflows.
2. Why is $120 an important level for Solana?
$120 is a strong resistance zone where selling pressure increases, and breaking above it could signal a bullish trend.
3. Is the current rebound strong enough to continue?
The rebound is positive but still fragile, as volume and derivatives data do not yet show strong confidence.
4. What happens if Solana fails to hold its current support level?
If support near $95 breaks, the price could fall toward lower levels around $70 to $80.
5. Do network upgrades affect Solana’s price now?
Upgrades improve long-term value, but short-term prices are mainly driven by market sentiment and trading activity.
