Solana’s price is struggling to cross above the resistance level at $126 despite the increment in staking activity. However, as traders still hold the coin despite seeing it stumble, a bullish narrative is expected.
During the past week, Solana has been trading under the $128 resistance level, oftentimes testing and breaking above, but not able to keep above this level. As such, the coin lost more than 5% during the past 7 days. The coin crashed to its weekly low of $117 before once again making a recovery past $125. Since January 28, the token has crashed from $127 to $123.Â
Liquid staking hit $9.6 billion
The token’s disappointing price action comes on the back of an increase in staking activity. As shown in the chart below, the liquid staking pool spiked from $7.7 billion in mid-November to $9.6 billion as of early January 2025. Using Liquid Staking Tokens (LSTs) in DeFi increases capital velocity because the same staked SOL can earn multiple yields and power multiple transactions at once, driving higher demand without increasing supply.
Despite this increment in staking activity, the SOL prices have been quite numb. But what’s more surprising is that Solana holders are still holding the coin without getting rid of it, even when the prices are stagnating.Â
Price stagnates, but long-term holders increase
However, the conviction of Solana’s recovery is very strong, as retail and long-term investors are still patiently holding the coin despite the stagnating prices. According to Glassnode, the HODL Waves data shows a significant increase in the 3-month to 6-month holding group. In just a matter of 48 hours, this group’s share of Solana supply rose from 21% to 24%. This cohort largely consists of investors who entered positions around October 2025.
As shown in the chart above, Solana is trying to convert the resistance level at $126 into support. It looks like Solana’s downtrend has ended, and the new uptrend has taken over. However, this is just the very beginning of the uptrend, and the RSI indicator has not changed its downward direction. It will take some time for the RSI-lagging indicator to reflect the change of momentum.
Given that Solana recovers successfully, it will test the immediate resistance level at $133, and then once it successfully breaks this level, it will head to $150, the psychological level.
