Solana’s price is stuck in a technical bear market after falling 59% from its all-time high in September last year. However, after forming a double bottom pattern, SOL price appears to have reached a key support level around $113, a decline that came amid a broader crypto market decline this week.
The crypto token is now trying to stage a recovery that will parallel the broader market, which is up a fraction of a percentage point to a market cap of $2.91 trillion, according to Coingecko data.
Solana price is up 3.5% over the past 24 hours despite a 7.5% decline over the past week, trading at $117.30 as of 3:02 a.m. EST. However, trading activity has fallen dramatically, with SOL’s trading volume increasing 28% to $5.6 billion.
Gold and silver slide as markets weigh the Trump candidate
Wall Street’s major indexes closed lower on Friday as investors viewed President Donald Trump’s nomination of former Federal Reserve Governor Kevin Warsh as a hawkish choice to succeed Federal Reserve Chairman Jerome Powell.
According to Trump and many economists, Warsh is expected to favor lower interest rates but not halt the more aggressive monetary easing associated with some other potential nominees.
With Powell’s term ending in May, Warsh, if confirmed by the Senate, would take the helm of the central bank.
JUST IN: 🇺🇸 President Trump officially nominates pro-Bitcoin Kevin Warsh as the new Chairman of the Federal Reserve!
This is bullish for $BTC and crypto! 🔥 pic.twitter.com/fAWgqelYBf
— CEO (@Investments_CEO) January 30, 2026
In addition to assessing the risks of US tensions with countries such as Iran, investors also worried about the prospect of another US government shutdown after new barriers emerged in the Senate to an agreement that would guarantee continued funding for agencies’ activities.
The US government began what is expected to be a brief shutdown on Saturday after the Senate failed to approve a deal to keep a host of operations funded before the midnight deadline.
As a result, the Dow Jones Industrial Average fell 179.09 points, or 0.36%, to 48,892.47, the S&P 500 lost 29.98 points, or 0.43%, to 6,939.03, and the Nasdaq Composite lost 223.30 points, or 0.94%, to 23,461.82.
The interest-rate-sensitive small-cap Russell 2000 index recently outperformed large-cap indexes, but lagged Friday with a loss of 1.6% for the day.
In the past 48 hours, more than $7 trillion has disappeared from the precious metals market. Silver is down 29% to around $85/ounce, while gold is down 8.15% to trade at $4,893.2/ounce.
Amid these downtrends, can Solana price continue to rise after such positive gains over the past day?
Technical analysis of the SOL price indicates a continued decline
Solana price is trading within an intraday low of around $114.83 and a high of $118.61, just inside the highlighted neckline of the double top pattern, which acts as a bearish sign in most cases.
The bearish sentiment continues as the SOL price is trading well below the 50-day Simple Moving Average (SMA) on the weekly chart, but is held above the $113 support by the 200-day SMA, now at $103.91. ‘
Meanwhile, Solana’s Relative Strength Index (RSI) is still declining on a weekly basis, currently at 36.57 and still falling, showing that bears are still in charge in the long term.
The 200-day SMA now acts as a long-term buffer against downside pressure. If the bears manage to breach this support area, the price of SOL could fall even further.
The technical data now points to a continued decline as the market faces continued volatility. If this support is broken, Solana faces the risk of a decline towards the August 2023 resistance area around $47.3.
On the upside, the 50-day SMA of $160.77 acts as the next major resistance and target. Historically, buyers have used the $113 support to stage a recovery. If buyers intervene at this level and break the 50-day SMA, the next major target will be the $229 level to the upside.
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