* Solana traded to lows of $128 as the price broke down from above $135.
* The technical outlook suggests bears could eye a dip to $120 or lower.
* Bitcoin’s trajectory will also dictate broader sentiment.
Solana (SOL) price declined by about 4% in the past 24 hours to trade below $130 as of writing on January 20, 2026.
The altcoin’s value slipped amid heightened selling pressure across the broader market, with corrections sending Bitcoin to around $90,600.
For Solana, derivatives metrics hint at a potential bearish tilt, with further downside action toward sub-$120 levels likely.
Solana dips below $130
Top altcoins continue to see notable traction, as shown by the $1 billion real-world assets milestone for Solana.
However, while this points to long-term potential, in the short term, it appears bullish sentiment is waning.
Escalating global economic uncertainties and cryptocurrency sector volatility signal this outlook, with long liquidations in SOL derivatives surpassing $20 million in the past 24 hours.
The imbalance in liquidations, with longs comprising over 95% of total wipeouts, points to overcrowded bullish bets.
Notably, this shows how vulnerable bulls are to cascading sell-offs.
In this case, the aggressive unwinding by leveraged bulls has open interest in SOL futures contracting to roughly $8.2 billion amid diminished risk appetite.
Meanwhile, funding rates hover at a mildly 0.0070%, but seller dominance has SOL prices down 8% this past week.
The monthly action has seen shorts shrink the altcoin’s value to just +2.4%.
A look at institutional flows does present a mixed picture. US spot Solana ETFs registered over $47 million in net inflows last week.
SoSoValue data shows that net inflows were up from about $41 million and $20 million over the previous two weeks.
However, spot-driven selling could erode this support, potentially triggering outflows.
SOL price forecast – Is $120 next?
As highlighted, Solana traded below the key support at $130, having slipped under the 20-day and 50-day exponential moving averages.
The EMAs are clustered at $137 and $159, respectively, hinting at a short-term bearish structure.
Charts also show the daily MACD line has crossed below its signal, with histogram bars expanding negatively.
Meanwhile, RSI hovers at 41 and is drifting toward oversold territory to suggest more room for downward momentum.
If support at $125-$126 fails, it will open a path for a revisit of the $120 mark.
Bears could target lows of $116 reached on December 18, 2025.
On the other hand, upside resistance looms at the $137 level, and notable supply zones also await around $145 and $160.
A decisive move in either direction will be key to bears or bulls. Market sentiment will also hinge on Bitcoin’s trajectory, with fresh tumbles amplifying SOL’s downside vulnerability.
