Eyes on $126 for a Major Long Setup

Key Insights:

• SOL retests key demand zone after breakout; traders eye $126 for potential low-risk entries.
• A trendline breakout above $130 may confirm a bullish reversal if the demand zone holds.
• RSI near 43 shows weakness, but setup remains valid if support holds and confirms strength.

Solana (SOL) was trading at $129.53 with a 24-hour volume of $4.48 billion. The price is down nearly 2% in the past day and has dropped more than 8% over the last week.

Price Returns to Demand Zone

Trader Oxion noted that SOL has broken out of a previous consolidation range and is now pulling back into a zone between $126.2 and $128.1. This level matches past support and areas of high activity, making it a spot where traders are watching for a possible bounce.

“My long area remains 126.2 – 128.1… Waiting for a clean retest of the zone before entering. No chasing, only reactive entries,” he said. The trader isn’t entering early but wants to see price confirm support before taking action. The RSI sits around 43, showing some weakness but not yet at oversold levels.

Trendline Break is Key

A separate chart shared by trader1sz shows SOL pressing against a descending trendline after weeks of lower highs. The price is also testing horizontal support near $129. A potential reversal setup is forming if this trendline is reclaimed with strength.

he wrote,

“$SOL at key support. Ideal trigger plan is if we can smash above the trendline and bottom from around here,”

The chart outlines a rounded base and a breakout structure, with a path that includes a retest before continuing higher.

Clear Targets If Breakout Confirms

The chart points to several resistance levels. The first major area is around $163.50, followed by $195.30 and $227.60. The top end of the range includes $243.75 and $259.90. These levels line up with past highs seen between July and November.

The plan depends on price reclaiming the trendline and holding the current zone. Without confirmation, the setup remains inactive.

Setup Depends on Support Holding

The zone between $126 and $128 is key. If it holds, traders may look for entries on signs of strength. If it breaks, the move is off the table. Both traders are watching closely for confirmation before taking any position.