Remember that moment when you thought everything was crumbling, only to watch the floor turn into a trampoline? That’s exactly what Solana is doing right now at $131, and honestly, it feels a little familiar.
I’ve been staring at SOL charts longer than I care to admit, and every time price revisits this particular zone something interesting happens. It’s not magic. It’s just market psychology doing its thing in plain sight.
Why $131 Keeps Mattering More Than People Think
Let’s get straight to the point: $131 isn’t some random round number someone pulled out of thin air. It’s the former breakout level from late October that flipped into support, got retested multiple times, and eventually became the launchpad for the move that took Solana above $200 just weeks ago.
When price comes back to a level like this after a sharp drop, two things usually happen. Either sellers finally overwhelm the zone and we head lower, or buyers who missed the first ride show up with serious intent. Right now, all signs point to the second scenario.
The Volume Profile Tells a Clear Story
Look at any decent volume profile on the daily or weekly timeframe and you’ll see it immediately – the heaviest trading activity since the breakdown sits right around $130-$133. That’s the point of control, the price where most contracts changed hands. Markets love revisiting these areas because that’s where liquidity lives.
Think of it like this: imagine a busy highway interchange. When traffic (price) comes back through after being diverted, everyone already knows the quickest lanes. Same thing here. Smart money accumulated heavily the first time around. They’re not suddenly going to abandon the spot on the second visit.
High-volume nodes act like gravity wells for price. The market has memory, and $131 is where a lot of positions are still sitting underwater waiting for relief.
A Developing Double Bottom You Can Actually Trade
Zoom out to the daily chart and something pretty obvious jumps out – two clear swing lows around $128-$130, separated by a modest bounce that failed to make a lower high. Classic double-bottom behavior. And the neckline? It sits roughly at $150.
Now, I’m not saying this pattern is guaranteed to play out perfectly. Nothing ever is. But when you combine it with oversold stochastic readings, diverging RSI on the 4-hour chart, and increasing spot CVD (cumulative volume delta), the probability starts tilting heavily toward the bulls.
- Two distinct lows within 5% of each other
- Higher low on momentum indicators (RSI, MACD histogram)
- Increasing volume on the second test – classic sign of absorption
- Point-of-control alignment directly underneath current price
Check, check, check, and check.
On-Chain Data Is Quietly Screaming Accumulation
While most retail traders panic-sold the drop from $180 to $130, the whales did something different. Exchange balances for SOL have been dropping steadily for ten days straight. That’s not profit-taking. That’s distribution from weak hands to strong hands.
The number of addresses holding between 1,000 and 10,000 SOL has increased by over 8% during this correction. Meanwhile, the 100-1,000 cohort barely budged. Translation: mid-tier whales are stacking, but the really big players haven’t even started moving yet.
I’ve found that when exchange supply drops this consistently while price consolidates at a major level, the eventual breakout tends to be violent. We saw the exact same setup before the November leg up that took us from $140 to $260 in less than three weeks.
The Bigger Picture: Solana vs. The Market
One thing that keeps getting overlooked – Solana’s correction has actually been milder than most top altcoins when measured against Bitcoin. The SOL/BTC pair is holding above its 200-day moving average for the first time since early 2024. That’s quietly massive.
While Ethereum/BTC bleeds and most layer-1 pairs look ugly, Solana is showing relative strength. That usually means when Bitcoin finally stabilizes or starts grinding higher again, SOL will be one of the first to rip faces off.
| Asset | Drop from ATH | vs BTC Performance |
| Solana | -48% | Holding 200DMA |
| Ethereum | -58% | Below 200DMA |
| BNB | -42% | Testing support |
| Cardano | -72% | New yearly lows |
The table doesn’t lie. Solana is outperforming its peers during the scare phase. That’s exactly the kind of behavior you want to see from a coin that’s setting up for outperformance when sentiment flips.
What Could Actually Go Wrong Here?
Look, I’m bullish on this setup, but markets love to humble anyone who gets married to a thesis. The main risk right now would be a clean weekly close below $128. That would invalidate the entire higher-low structure we’ve been building since March and likely open the door to $100 or lower.
Another yellow flag would be shrinking perpetuals funding rates turning heavily negative combined with cascading liquidations. We’re not seeing that yet – funding is actually slightly positive on most major exchanges, which tells me shorts are getting nervous.
Price Targets If Bulls Take Control
Assuming $131 holds (and everything we’re seeing suggests it will), here’s how I’m mapping out the next moves:
- First resistance: $150 – psychological level + former breakdown zone
- Measured move from double bottom: ~$172 (adding height of pattern to breakout)
- Fibonacci extension targets: $185 (1.618) and $208 (2.0) if momentum really catches
- Ultimate magnet: previous all-time high area around $260 if we get a proper altseason kickoff
Even a conservative trader could look for 25-30% upside from current levels with a clearly defined risk parameter below $128. That’s the kind of asymmetry that gets me excited.
The most interesting part? We’re seeing almost identical price action to what happened in early 2023 when Solana was written off as dead money around $20. Everyone remembers what happened next. History doesn’t repeat, but it absolutely rhymes.
Sometimes the best trades are the ones that feel uncomfortable because everyone else is scared. Right now, $131 is where the brave money is stepping in while the crowd panics. Whether you’re trading spot, futures, or just holding for the long term – this level deserves respect.
The next 48-72 hours will probably tell us everything we need to know. If Solana can put in a strong daily close above $138 by the weekend, I suspect a lot of sidelined capital is going to start chasing hard.
Either way, one thing feels certain: $131 is doing its job exactly as it has before. The question isn’t whether this level matters anymore. The question is whether you’re paying attention while it sets up the next move.
