Solana has been trading within a narrow range between $117.3 and $128.8 as of December 19, indicating a cautious market environment. Traders are hesitating to commit to strong positions, following several months of volatile price movements. This has led many market participants to seek clearer directional signals.
A critical question is emerging: is SOL forming a genuine base, or is this merely a temporary lull? With the end of 2025 approaching, technical price levels are attracting increasing attention, likely influencing short-term trading strategies.
Current price dynamics suggest a balancing act between spot buyers and derivatives traders. While spot market participants are entering the fray, the derivatives market remains vibrant and aggressive. This ongoing tension is shaping the cryptocurrency”s price behavior. Recently, Solana”s trading volume surged to approximately $6.0 billion within a 24-hour period, with its market capitalization hovering around $70.9 billion, securing its position as one of the leading tokens in the market.
According to data from DefiLlama, about $1.497 billion in perpetual volume was recorded on Solana-associated platforms within the same timeframe, with open interest reaching approximately $365 million. Over the last month, total perpetual volume has accumulated to nearly $39.8 billion.
As the price stabilizes, analysts are observing a notable bullish divergence in the Relative Strength Index (RSI) on the three-day chart. This divergence indicates that while the price tests the same support zone, the RSI is forming higher lows, signaling a potential weakening of selling pressure. Such patterns have previously appeared before significant market reversals.
The current price action aligns closely with historical precedents where similar setups foreshadowed major market lows. The repeated tests of this crucial support level, coupled with the improving momentum indicators, suggest that downside pressure may be diminishing. However, until a decisive breakout occurs, the market remains within a broader range, and the support level continues to serve as a pivotal balance point.
