SOL is currently in a fairly sensitive position. After a strong rally from around 103 to above 124 USDT, the market has struggled to maintain its previous upward momentum. Price has broken below the short-term ascending trendline and is now trading around 117.9, suggesting that buyers are gradually losing control at higher levels.
What is interesting is that Solana’s fundamentals are not necessarily weak. Inflows into Solana ETFs and continued ecosystem developments still support the longer-term growth story. In the short term, however, SOL is trading in a more challenging environment, with the U.S. dollar and Treasury yields remaining elevated, expectations for tighter Fed policy increasing, and capital becoming more cautious toward risk assets. For a high-beta altcoin like SOL, a risk-off macro environment can temporarily outweigh project-specific positive catalysts.
On the H2 chart, the 119.5–120.5 USDT area is becoming a key test. Price remains below the Ichimoku Cloud, while recent recovery attempts have encountered supply as they approach this zone. If SOL continues to fail to reclaim 120, I would view the current bounce mainly as a retest after the short-term bullish structure weakened, rather than the beginning of a new leg higher.
The scenario I am watching is a rejection from resistance followed by a move back toward 116.3 USDT. If that level fails, the 112–113 USDT demand zone becomes the next downside target.
For that reason, I would not chase a SELL while price is already close to support. I prefer to wait for SOL to recover toward 119.5–120.5 and then look for a potential SELL opportunity, with 116.3 and 112–113 as the two key areas below. As long as the market fails to reclaim 120 and hold above the Ichimoku Cloud, rallies remain more attractive as selling opportunities than signals to chase the upside.
