Solana price prediction: SOL pressured near $121 as leveraged longs risk forced exit

Traders Union
All News
Crypto News
SOL weakens towards $121 after rejection from 50 EMA

Highlights

Solana could drop to $115 if $121 support collapses under the current bearish momentum.
Positive funding rate and long-to-short ratio show bulls trapped in the downward price trend.
Price recovery requires a funding rate drop, higher open interest, and reclaim of $124 resistance.

The market began the day quietly, as low holiday participation limited volatility. Although Wednesday’s session offered a temporary bullish retracement, Solana price failed to break above the 50 EMA on the one-hour chart, which capped the move at $123. That rejection reinforced the resistance from short-term moving averages and set the stage for today’s renewed slide.

Solana price chart (Dec 2025). Source: TradingView

So far this week, Solana has shed more than 3.6%, pushing the month-to-date loss beyond 9%. The overall technical structure points to sustained downside pressure. RSI indicators across the hourly, daily, and weekly charts are all sitting deep in bearish territory, indicating that momentum favours further declines unless buying interest returns quickly.

SOL flat open interest and positive funding rate expose crowded long positioning

On the derivatives front, data shows open interest has remained flat near $2.81 billion. This indicates that traders have not closed positions even as price weakens, suggesting a buildup of vulnerable long positions. Funding rate is still mildly positive at 0.0114, meaning long traders are continuing to pay a premium to keep positions open. This signals a crowded long environment where buyers are holding onto positions despite no upward price movement.

The long-to-short ratio stands near 4.6, further confirming that a significant portion of the market is still biased toward the upside. However, this optimism has not translated into price recovery. When such positioning occurs in a falling market, it often leads to liquidation-driven declines as leveraged longs are forced to exit.

If Solana fails to hold above the $121 support zone, this could trigger a sharp flush toward $115. Price is now sitting at a pressure point where long exposure is overextended, momentum is weak, and the broader sentiment is misaligned with price action. A recovery remains possible if funding rate declines, open interest expands, and price stabilizes above the current level. Such a shift would open the door for a rebound toward $124, but absent those signs, sellers maintain short-term control.

In recent analysis, we discussed how Solana broke below its five-day range, falling over 2% to $121. Rising open interest and a 4.9 long-to-short ratio exposed bulls to fresh liquidation risk.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.