Solana (SOL) is currently trading within a crucial price range, hovering between $135 and $138. This consolidation follows a significant rally that saw Solana surpass $143, only to be met with robust selling pressure that pulled the price back down. Despite this recent setback, Solana remains above a critical support zone, maintaining the overall bullish structure in the market.
The crypto market started 2026 with a strong upward momentum, but the swift reversal has positioned Solana at a pivotal decision point. The price compression currently observed indicates a potential volatility move is on the horizon, making the next breakout or breakdown heavily reliant on supply and demand dynamics.
Active Address Growth Signals User Engagement
On-chain data reveals a notable increase in activity on the Solana network, with the number of daily active addresses reaching new short-term highs. This surge reflects heightened user engagement as the year progresses, coinciding with Solana’s price consolidation near a significant resistance zone. Historically, rising network activity during periods of price compression often precedes a decisive market move, either confirming strength or paving the way for increased volatility.
The uptick in active addresses suggests a growing interest from users, traders, and applications on the Solana network. This trend generally indicates improving on-chain demand that goes beyond mere speculative price actions. Should this level of activity persist, it could bolster price stability above key support levels and enhance the likelihood of a bullish breakout. Conversely, if network activity diminishes while prices remain capped, it may hint at exhaustion, raising the risk of a downward movement.
Solana is currently stabilizing after experiencing a prolonged decline. This price range of $135 to $138 has historically acted as both support and resistance, making it a focal point for traders. The market appears to be entering a decisive phase, characterized by tightening price compression and momentum indicators that are shifting to a neutral-to-positive stance.
Technical Indicators Point to Potential Moves
From a technical perspective, SOL is forming a solid base above prior demand levels while attempting to reclaim the Ichimoku baseline. The cloud formation remains overhead, indicating resistance; however, the Relative Strength Index (RSI) has risen above 50, suggesting improving momentum. A sustained breakout above the $140 to $145 range could open the pathway for prices to escalate toward $155 to $165.
On the downside, a failure to maintain the $132 support level could expose SOL to a pullback towards the $125 to $120 range. Volume expansion will play a critical role in validating either scenario. To achieve a price target of $150 within the month, SOL must first secure acceptance above the $140 to $145 resistance zone, supported by strong trading volume. A clear daily close above this range would shift market momentum decisively bullish, increasing the likelihood of a swift move toward $150 to $155.
While the potential for new all-time highs in 2026 exists, achieving this milestone depends on the formation of sustained higher highs, continued growth in network activity, and broader market strength. At present, Solana appears to be building a base rather than fully entering a bullish trend, making confirmation levels essential before anticipating a larger rally.
