Market Pulse: Solana Plummets and Finds Shelter at Key Support

Source: CritpoTendencia Original Title: The Market Pulse: Solana Plummets and Finds Shelter at Key Support Original Link: The cryptocurrency market began a significant bearish move on Sunday, January 18, and on Tuesday, it registered a new wave of liquidations in long positions of major assets, including Solana (SOL). In recent hours, the token retreated by -5.4%, reflecting the selling pressure dominating the market.

In this context, we analyze what factors may have triggered this aggressive sell-off and what are the most relevant technical levels that SOL could test in the short and medium term.

The market reacts to a new episode of global tension

During the morning of this Monday, January 20, the crypto market reacted strongly to a deterioration in risk appetite globally. Geopolitical and commercial tensions between the United States and Europe once again took center stage, generating uncertainty in financial markets and causing capital outflows from assets considered higher risk, including cryptocurrencies.

This environment boosted demand for liquidity and pressured the main tokens in the market downward.

Adding to this, the loss of relevant technical levels in Bitcoin during the early hours of the session triggered cascading liquidations within the derivatives market.

The movement quickly spread to altcoins, including Solana, which mirrored the decline as part of the usual domino effect when the market enters a risk-averse phase. Overall, the combination of macroeconomic factors and technical pressure explained the overall weakness observed in the early hours of the day.

Technical analysis: What levels could SOL visit?

In the SOL/USDT pair on the 1H timeframe, it is observed how strong selling pressure caused a clear structural break, bringing the price from the $142 zone to levels near $127. This movement occurred with a marked increase in volatility and impulsive candles, confirming the dominance of the seller side in the short term.

Currently, the RSI (14) is at extreme oversold levels, around 26 points, opening the possibility of a technical rebound. However, this condition alone does not guarantee a trend reversal, as the overall context remains bearish and the price continues to operate below its main value zones.

In this scenario, the $127 zone acts as immediate support. Before any further downward extension, it is likely that the market will attempt a corrective rebound toward the $133 zone, which coincides with the 0.618 Fibonacci retracement level and the proximity of the VWAP, now functioning as a relevant dynamic resistance.

However, if the rebound occurs with low volume and the price fails to recover that zone, the bearish scenario could resume. In that case, levels to watch are at $124, followed by $120 y, and in an additional extension, $117, areas where new demand or absorption attempts by the market could appear.

In this context, it is crucial to wait for clear confirmations in Solana’s price behavior, especially at resistance zones, and to operate cautiously while the market determines whether the current movement is a technical rebound or a continuation of the dominant bearish trend.