Downtrend Holds As Spot Flows Stabilize Near Key Support

• SOL remains inside a descending channel with EMAs continuing to cap rebounds.
• Buyers defend the $120 support zone, but momentum stays weak.
• Spot inflows have stabilized, signaling easing sell pressure, not a reversal.

Solana price today trades near $123.4 after rebounding modestly from recent lows but remains locked inside a broader corrective structure. Price is holding above short-term support near $120, yet sellers continue to control the trend as SOL trades well below its declining EMA stack. The tension heading into December 27 centers on whether stabilization can turn into a base or if the downtrend resumes.

Descending Channel Keeps Pressure On Buyers

On the daily chart, Solana continues to trade inside a well-defined downward channel that has guided price lower since October. Each recovery attempt has stalled beneath falling resistance, reinforcing the bearish structure.

SOL remains below the 20, 50, 100, and 200-day EMAs. The 20-day EMA near $127.6 and the 50-day EMA around $139.9 now form the first major resistance band. Above that, the 100-day EMA near $155.7 and the 200-day EMA near $165.9 define the broader trend ceiling.

Bollinger Bands remain expanded to the downside, reflecting persistent volatility during the selloff. Price is hugging the lower half of the band, a signal that sellers still dominate directional control. Until SOL can reclaim at least the 20-day EMA, the trend remains corrective.

Support At $120 Becomes The Line In The Sand

The $120 to $117 zone has emerged as the most important near-term support. This area has absorbed repeated selloffs throughout December and aligns with the lower boundary of the descending channel.

Price briefly dipped below this region earlier in the month but failed to attract sustained follow-through selling. That reaction suggests demand exists, though it remains cautious. A daily close below $117 would expose the next downside pocket toward $105 and potentially $95 if momentum accelerates.

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For now, buyers are defending support, but they are doing so without strength. Candles continue to close with limited range expansion, highlighting hesitation rather than accumulation.

Intraday Structure Shows Attempted Stabilization

On the 2-hour chart, SOL is attempting to build a short-term base above $122. The Supertrend remains bearish near $124.4, capping upside attempts. Until price flips that level, intraday momentum stays neutral to weak.

DMI readings show declining trend strength. The ADX remains subdued, reflecting a slowdown in directional conviction after the sharp November selloff. This often precedes consolidation rather than immediate reversal.

Short-term bounces have been shallow, suggesting that traders are scalping ranges rather than positioning for trend change. That behavior fits a market waiting for confirmation.

Spot Flows Offer A Tentative Positive Signal

Spot flow data shows a modest improvement. On December 26, Solana recorded a net inflow of roughly $31.7 million as price traded near $123.5. While not a surge, it marks a shift from the heavy outflows seen through October and November.

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Sustained inflows are required to alter the trend, but stabilization matters. When aggressive selling subsides, downside pressure often eases, allowing price to form a base. For now, flows suggest distribution has slowed rather than reversed.

Fundamentals Improve As Price Struggles

Despite weak price action, Solana’s network activity continues to expand. DEX spot volume on Solana more than doubled year over year, rising from $159 billion in Q3 2024 to $343 billion in Q3 2025. That growth underscores strong on-chain demand and developer traction.

The disconnect between fundamentals and price reflects broader risk-off conditions rather than network deterioration. Markets are pricing technical structure first, leaving fundamentals as a secondary driver in the short term.

This divergence keeps longer-term participants interested, but traders remain focused on charts and liquidity.

Outlook. Will Solana Go Up?

Solana is at a decision point.

• Bullish case: SOL holds $120 and reclaims $127.6 with improving volume and continued spot inflows. A break above $140 would confirm trend stabilization and open room toward $155.
• Bearish case: A daily close below $117 confirms support failure and exposes $105, with $95 as the next downside zone.

Until price reclaims its EMA resistance, the broader trend remains under pressure. Stabilization is possible, but confirmation is still missing.

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