Solana (SOL) continues to face selling pressure during the December 24 session, with price action remaining below a critical short-term support zone—highlighting a clear loss of recovery momentum.
Despite ongoing positive developments within the Solana ecosystem, the broader market structure remains defensive. Short-term price fluctuations are being driven more by liquidity dynamics than by sustainable trend-based demand. Repeated failures to reclaim higher price levels have gradually eroded bullish confidence, increasing the probability of further short-term downside.
For several sessions now, SOL has been effectively trapped within a wide consolidation range between $122 and $145, signaling a lack of strong directional conviction. Bears remain in control as bullish impulses have proven insufficient to attract long-term capital inflows. This compressed price action has shifted traders’ focus toward nearby liquidation zones rather than clear trend continuation setups.
Weak Momentum Reflected in Technical Indicators
From a technical perspective, Solana’s RSI is hovering near the neutral 40 level, underscoring weak momentum and market indecision. This level typically reflects a lack of aggressive buying interest while still leaving room for further downside.
Meanwhile, the MACD remains below its signal line, reinforcing the bearish bias and suggesting that selling pressure has not yet meaningfully subsided. Crucially, there is still no confirmed bullish divergence or reversal signal on higher timeframes, keeping the near-term outlook fragile.
Will Whales Decide Solana’s Next Major Move?
On-chain data from Onchain Lens reveals a sharply divided landscape among large whale addresses, with high-leverage bets placed in completely opposite directions.
The whale address “0x0e4” continues to hold a 20x leveraged long position on SOL, currently suffering unrealized losses exceeding $5.78 million. Additional leveraged long positions on BTC (20x) and HYPE (10x) have further expanded total unrealized losses to nearly $8.5 million, placing this address under significant pressure if price fails to rebound.
In contrast, whale “0x35d” has recorded substantial profits from a 20x leveraged short position on SOL, generating approximately $11 million in gains. Notably, this position is being reduced gradually, suggesting a calculated profit-taking strategy rather than a panic-driven risk exit.
Beyond SOL, “0x35d” also holds leveraged positions on BTC and ETH, bringing total profits to more than $27.7 million—clearly positioning this whale on the winning side of the current leverage battle.
Infrastructure Catalyst: Coinbase Expands SOL Support via Base
Coinbase recently announced plans to enable direct SOL deposits and withdrawals through the Base network, marking a significant step forward in cross-ecosystem interoperability.
This integration allows capital to flow seamlessly between Solana and Base without relying on traditional third-party bridges. As a result, Solana’s high-performance ecosystem gains direct access to Ethereum-based liquidity on Base, potentially expanding trading activity and DeFi use cases.
Importantly, users will be able to utilize SOL as an ERC-20 token within native DeFi applications on Base, enhancing flexibility and expanding SOL’s utility across chains.
While market participants have welcomed the reduction in transaction friction and improved cross-chain accessibility, the rollout remains limited to certain jurisdictions. As such, its full global impact may take time to materialize.
Liquidity Clusters Signal Key Price Battlegrounds
Liquidation heatmaps over the past 48 hours indicate dense downside liquidity around the $121–$122 zone, where a large concentration of leveraged long positions remains vulnerable to forced liquidation. As long as this liquidity pocket remains untested, SOL may continue to face downward pressure in the near term.
On the upside, significant liquidity clusters are visible between $128.5–$129.5, with secondary zones forming around $131.5–$133. These areas reflect stacked short positions and could act as “price magnets” if momentum shifts and triggers a short squeeze.
Until such a catalyst emerges, however, price action is likely to remain subdued, with rebounds appearing corrective rather than signaling a true breakout.
Final Outlook
Solana remains locked in a liquidity-driven stalemate, with whales positioning aggressively on both sides and technical indicators offering little clarity. A decisive move—either through liquidity sweeps or a structural shift in momentum—will likely define SOL’s next major trend.
Until then, patience and disciplined risk management remain essential.
👉 Follow me for more professional crypto analysis, on-chain insights, and real-time market breakdowns.
📊 Stay informed. Trade smarter.
