Solana Price Slips Below Key Trend Support Despite Memecoin Resurgence — Is $120 Next?

Solana  price has continued to fall even as meme-driven activity across the network has sharply picked up.

SOL was trading near $122 at press time, down 3.3% over the past 24 hours. Over the week, the price has ranged between $118 and $134, and the token is now down 8.5% on the week after failing to hold January’s rebound.

Market activity increased sharply during the pullback. The 24-hour trading volume for Solana (SOL) rose by more than 270% to $6.42 billion. The increase suggests that traders are actively switching positions as the price declines, indicating increased short-term involvement. 

Derivatives paint a similar picture. CoinGlass data shows that futures volume rose 256% to $14.79 billion while open interest fell by 0.75% to $7.47 billion. When volume increases but open interest decreases, it usually indicates position closing and quick turnover rather than conviction-driven new investments.

Memecoins return, but momentum cools quickly

The increase in trading comes as Solana’s memecoin sector shows renewed life after a quiet stretch through much of 2025. Recent estimates place the combined valuation of Solana-based meme tokens between $6.8 billion and $8 billion, following a wave of speculative inflows early this year.

Platforms such as Pump.fun recorded record sessions, with peak daily volumes reported near $1.2 billion during periods of intense activity. Several viral launches helped drive attention back to the ecosystem, with some tokens posting sharp, short-lived gains after unusual social media triggers.

This burst of speculation helped lift SOL earlier in January, pushing the price back above $139 and briefly toward the mid-$140s. That move has since unwound.

Price declined as the initial excitement subsided, indicating that a large portion of the inflow was related to short-term trades rather than longer-term positioning. Memecoin trading increases Solana’s usage and fee activity, but its effects on SOL have been inconsistent.

Solana price technical analysis

On the chart, Solana has slipped below its short-term trend support around $124 and failed to reclaim prior consolidation levels. Each bounce attempt has been met with selling, keeping pressure on the price.

The 50-day moving average, sitting in the mid-$130s, continues to act as a ceiling. Since the peak above $240, the price has consistently rolled over before reaching that area. Selling pressure has also pushed the price closer to the lower Bollinger Band, while the mid-band has started to slope lower.

Momentum has softened. The relative strength index has dropped below the mid-40s and has yet to show any meaningful recovery. Downside energy has slowed near current levels, but there are no clear signs of a reversal.

The $120 zone now sits in focus. It lines up with prior demand and recent consolidation. A daily close below it would leave little support until the psychological $100 area. If buyers step in and hold the level, price may stabilize, though upside attempts are likely to stay capped unless SOL can move back above $135–$140.