Solana (SOL) is currently navigating a critical phase as it consolidates its price between $135 and $138. Despite encountering selling pressure after an initial rally that lifted SOL above $143, the cryptocurrency has managed to hold above a key support zone. This stability keeps the broader bullish structure intact, even in the face of recent market volatility.
With the new year underway, the crypto market opened 2026 with a significant bullish push. This momentum allowed Solana to touch highs above $143 before a rapid pullback occurred, forcing the price downward. The price has since stabilized, but its position near this critical range raises questions about whether the next move will be a breakout or a breakdown.
On-Chain Activity Signals User Engagement
Despite the choppy price action, on-chain data reveals a notable increase in user engagement on the Solana network. The number of daily active addresses has surged to new short-term highs, reflecting heightened participation as 2026 begins. This uptick in network activity is particularly relevant, occurring concurrently with SOL’s price consolidation near a significant resistance zone.
Historically, rising network activity during periods of price compression often precedes decisive market moves. The current increase in active addresses suggests that participation from users, traders, and applications is growing, which may indicate improving on-chain demand. Should this trend continue, it could support price stability above critical support levels and bolster the case for a potential bullish breakout.
Conversely, if network activity diminishes while prices remain capped, it might indicate exhaustion in the market. Such a scenario could heighten the risk of a downward adjustment in SOL’s price.
Technical Indicators and Market Outlook
As Solana continues to trade within this consolidation zone, technical indicators reveal a market at a crossroads. The price is stabilizing in the $135 to $138 range—an area that has historically acted as both support and resistance. This trend suggests the market is approaching a significant decision point, with traders closely monitoring the situation for confirmation of the next directional move.
Currently, SOL is forming a base above previous demand levels while attempting to reclaim the Ichimoku baseline. Although the cloud remains overhead, indicating resistance, the Relative Strength Index (RSI) has risen above 50, reflecting improving momentum. A sustained breakout above the $140–$145 resistance zone could open the door for further gains, potentially pushing SOL toward $155–$165.
On the flip side, if the price fails to hold above $132, it may face a pullback toward the $125–$120 range. Volume expansion will be critical in confirming either scenario, as strong volume is necessary for a successful breakout above resistance levels.
For Solana to reach the $150 mark this month, it must first secure acceptance above the $140–$145 resistance zone with considerable volume. A clear daily close above this range would decisively shift momentum toward a bullish outlook and increase the likelihood of a rapid ascent toward $150–$155.
Looking ahead, the potential for a new all-time high in 2026 remains plausible, contingent upon continued higher-high formations, sustained network growth, and overall market strength. At present, Solana appears to be building a base rather than entering a full-fledged trend, making confirmation levels crucial before anticipating a larger rally in the near future.