Solana Price Prediction: SOL Approaches Critical Support Amid Continued Bearish Pressure!

Jakarta, Pintu News – Solana traded lower with a 2% decline on Thursday (29/1), in line with the general crypto market correction after the United States Federal Reserve (Fed) decided to keep interest rates unchanged on Wednesday.

The smart contract token is showing increasing bearish sentiment among retail investors, as evidenced by a decrease in Open Interest on SOL futures and a change in funding rate to negative. Technically, Solana shows further downside potential with targets to the support zone at $116 and possibly deeper to $100.

Retail Sentiment Decline and Potential Triggers for Recovery

Solana experienced weakness in terms of retail investor strength as capital exited its derivatives market, reinforcing risk-averse investor sentiment. Data from CoinGlass showed that Open Interest for SOL futures fell 1.40% in the last 24 hours to $7.42 billion, signaling either massive position liquidation or a reduction in leverage usage.

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Confirming the bearish bias, the value of long position liquidation reached $5.55 million-higher than the short liquidation of $1.34 million in the past 24 hours-indicating that bullish positions have generally been erased. Additionally, the funding rate turned negative at -0.0042%, reflecting the dominance of short positions from new market participants.

This weakened retail interest in Solana is also in line with the general market decline following the Fed’s decision to keep interest rates in the 3.50%-3.75% range with a 10-2 vote. Two votes were in favor of a rate cut, while the rest opted for a wait-and-see approach, indicating the quantitative tightening phase may be over.

A possible rate cut later in the year could boost liquidity in the crypto market, triggering a potential recovery.

Additionally, the upcoming re-meeting between the US government, banks, and crypto market leaders to discuss the structure of the digital asset market could potentially be a bullish catalyst, especially if the CLARITY bill is passed.

Technical Outlook: Will Solana Price Stay Above $116?

Solana is still trading below its 50-, 100-, and 200-day Exponential Moving Averages (EMAs), which confirms a bearish bias. At the time of writing, SOL was down 2% on Thursday, extending its decline of more than 1% from the previous day.

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The closest support for Solana is at $116, which previously managed to limit the price decline on Sunday and December 18th.

The Moving Average Convergence Divergence (MACD) indicator is trending below the signal line, but the narrowing negative histogram indicates that downward pressure is weakening.

Meanwhile, the Relative Strength Index (RSI) is at 40 and reversed from the center line, signaling weak sentiment, but has not yet entered oversold conditions.

If the SOL closes below the $116 level convincingly, it risks resuming its decline towards the psychological level of $100 and support at $95, which was the low on April 7.

On the upside, Solana faces several resistance levels, starting from the 50-day EMA at $133, followed by the 100-day EMA at $144, which is close to the $145-$148 supply zone.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• FX Street. Solana Price Forecast: SOL approaches critical support as bearish outlook persists. Accessed on January 30, 2026