Solana (SOL) experienced a sharp decline on January 19, 2026, dropping 3.19% in a single session to trade near $133.42. The sell-off pushed SOL below a critical technical cluster formed by the 20-day and 50-day Exponential Moving Averages (EMAs), signaling a breakdown in recent price structure.
The move was exacerbated by a massive wave of long liquidations in the derivatives market. Data from Coinglass reveals that over the past 24 hours, $59.51 million in long positions were liquidated, compared to just $1.42 million in short liquidations. This significant imbalance indicates that leveraged bullish bets were forcefully unwound, accelerating the downward pressure. Accompanying the liquidations was a 7.66% drop in total open interest, a classic sign of market capitulation as traders exit positions.
On shorter timeframes, the selling intensity pushed Solana's Relative Strength Index (RSI) on the 30-minute chart to an extreme low of 19.13, marking deeply oversold conditions that could attract short-term bounce attempts. However, the broader technical outlook remains bearish.
Technical analysis points to further potential downside. The report notes that SOL recently reversed down from a strong resistance zone around $144.30, which aligns with a former support level from October, the upper Bollinger Band, and the 38.2% Fibonacci retracement level. Given the strength of this resistance and the prevailing bearish sentiment across crypto markets, analysts project a likely fall toward the next key support level at $120.00, which previously halted a correction.
