Technical analysis and indicators such as RSI and MACD all point to a bearish Solana price.
The cryptocurrency market has had a tough start since the beginning of 2025, with market leader Bitcoin suffering a price decline from a high of $102,000 to $89,000 as the price could attempt to retest the key liquidity region of $85,000 to $80,000.
Following such a price decline for the past two weeks, Solana suffered a fair share of the market decline of over 15%. Despite showing signs of price recovery in the past few days, it has been a dead-cat bounce as price suffered more price setbacks, leaving whales and traders questioning whether the market is ready for a recovery.
With the US presidential inauguration scheduled for January 20, there have been rumors that Donald Trump is issuing an immediate policy reform that would benefit the crypto market. This leaves many hopeful of a potential market rally in the coming weeks.
While the crypto market, including Solana’s price, continues to trade at around $188, what are whales and investors planning, and where would they look to buy the Solana token?
Solana’s (SOL) price action is critical. The price looks more dominated by bearish price actions, as sell orders at the current market exceed the buy orders. The price is aiming to retest its key zone of $160, which could push the price to the upside.
Despite more sell orders dominating SOL’s price at the moment, investors and traders are optimistic about Solana’s long-term prospects. There is speculation that Solana spot ETF approval will come later this year, which could act as a catalyst for the price to rally towards $500 or $1,000 before the end of 2025.
Source – SOL Price Action From TradingView
Solana’s price action could be headed to its support area of $160 after seeing the price of Solana rejected around its high of $220 after breaking out of its bullish ascending triangle. The price is aiming to rally toward $265.
Solana’s price holding above $160 support will be a good start for whales in the coming weeks, as this region has acted as a good liquidity zone in the past, driving the price of Solana to new highs.
The overall market outlook for Solana at the moment looks bullish, as the price is still on track to reach $500 to $1,000 before the end of 2025.
Technical indicators predictions:
