Memecoin rebound but cannot stop SOL from weakening, Solana price approaches $120

January 26 News, despite a clear rebound in memecoin trading within the Solana ecosystem, the SOL price has not strengthened accordingly and continues to face downward pressure. Currently, SOL is trading around $122, down over 3% in the past 24 hours, with a weekly decline of nearly 9%, indicating that the momentum from the early January rebound has significantly weakened.

On-chain and derivatives data show that the market is not lacking in activity. SOL’s 24-hour trading volume has surged to approximately $6.4 billion, several times higher than before. Futures trading volume has also increased rapidly, but open interest has slightly decreased. This “volume increase, open interest decrease” pattern typically suggests high-frequency turnover of funds rather than the establishment of new medium- or long-term positions, indicating short-term trading behavior.

The core driver of this activity surge is the meme coin craze on Solana. In early 2026, some memecoins experienced sharp volatility driven by social media, causing short-term increases in transaction fees and usage on the Solana chain. The overall market cap of related tokens briefly returned to the $7 billion range. High-frequency issuance tools like Pump.fun also led to a large influx of speculative capital in a short period. However, this emotional capital quickly retreated after pushing SOL close to $140, and the price subsequently fell back.

From a technical perspective, SOL has broken below the short-term support at $124, with multiple rebounds blocked above $130. The 50-day moving average is forming a clear resistance, the middle band of the Bollinger Bands has moved downward, and RSI has fallen below 40, indicating that momentum remains weak. The $120 zone has become a key support level; if it is broken, the market will turn its focus to the psychological level of $100.

The activity within the Solana ecosystem has not disappeared, but the capital structure is now more geared toward short-term speculation. Without sustained buying pressure, it will be challenging for SOL to return to the $135–$140 range. The market will next focus on whether the $120 support can hold, which will determine whether the short-term trend stabilizes and consolidates or continues to decline.