Solana (SOL) is experiencing a significant price correction, with analysts warning of a potential retest of key support levels around $119. According to data from CoinStats, SOL's price has declined by 0.54% in the last 24 hours, trading at $126.61 at press time on January 25, 2026.
On the hourly chart, SOL appears to have established a local support level at $125.98. However, if the daily candle closes significantly below this mark, traders could see a test of resistance as early as tomorrow.
On the bigger time frame, the price is approaching a more substantial support zone at $124.67. A breakdown below this level could trigger a more profound drop into the $120-$122 range, according to technical analysis.
Popular crypto analyst Ali Martinez has provided additional insights, noting that Solana is showing signs of an extended correction phase. "Solana is attempting more downside pressure, which could see it retest 2025 lows," Martinez stated. The analyst highlighted that on-chain movements suggest the formation of new support around $119.54, a level that previously acted as a strong demand zone where buyers historically stepped in to halt declines.
The correction follows SOL's recent surge to $144.62 last week, where it encountered strong resistance. The cryptocurrency has faced consistent rejection near the $144 level, leading to a breakdown below intermediate support at $131.45. Martinez emphasized that $119.54 has become a critical level to monitor, as failure to hold above this support could trigger deeper losses for the asset.
From a midterm perspective, there are currently no reversal signals indicating an end to the downward trend. If the weekly candle closes around current prices or lower, SOL could soon test the $116.88 support level.
The broader crypto market downturn has contributed to Solana's decline, with rising selling pressure pushing the asset into deep red territory. Despite the correction, some analysts view the move as a healthy market adjustment following January's sharp rally rather than a full trend reversal.
