Solana (SOL) is showing early signs of stabilization after an extended pullback, according to the attached charts.
Price action over the past several days reveals a gradual slowdown in downside momentum, with SOL now trading around the $125–$126 area after a sharp dip and rebound.
The TradingView 4-hour chart shows that SOL experienced a strong decline from the $140 region earlier in the period, followed by increasingly smaller downside moves.
The sharp sell-off around December 18–19 pushed price briefly below $120, but that drop was quickly bought, leading to a fast recovery back above $125. Since then, price has moved sideways, suggesting sellers are losing control.
Falling Wedge Structure Comes Into Focus
The second image highlights a falling wedge pattern, a structure typically associated with trend exhaustion. The wedge is defined by lower highs and lower lows that are converging, signaling compression rather than acceleration to the downside.
According to recent analysis shown, downside momentum has clearly slowed inside this structure. The recent bounce from the lower boundary of the wedge aligns with this view, indicating that sellers were unable to extend the move lower despite a clear breakdown attempt.
$SOL falling wedge pattern is giving a bottoming signals.
Downside momentum has clearly slowed and now if we see a clean push and hold above the upper wedge resistance, that’s when the bullish targets will start making sense.
The risk here is starting to move away from… pic.twitter.com/Oe2ygQzVCc
— Elja 🦍 (@Eljaboom) December 21, 2025
The key technical condition outlined in the chart commentary is a clean push and hold above the upper wedge resistance. Such a move would confirm a structural shift away from continuation lower and toward a potential upside squeeze.
Risk Profile Begins to Shift
Based on the charts alone, the risk appears to be transitioning from further downside continuation toward a range breakout scenario. The repeated defense of the $120–$125 zone, combined with tightening price action, suggests that pressure is building rather than resolving lower.
Until a confirmed breakout occurs, SOL remains inside the wedge structure. However, the loss of downside momentum and the ability to reclaim and hold above recent lows indicate that bearish control is weakening.
For now, Solana sits at a technically sensitive area where resolution is approaching. The next decisive move above wedge resistance will determine whether this basing structure evolves into a broader recovery attempt.
