Solana Price Outlook for Jan 28: SOL Holds Key Support But Can it Break the Resistance at $128?

Solana has held key support and is testing crucial resistance levels, with traders closely monitoring for a potential breakout to higher levels.

For perspective, Solana (SOL) has experienced a positive 2.8% increase in the past 24 hours, now attempting to recover some of last week’s losses. The price ranged between a low of $123.05 and a high of $127.51 during this period, showing a clear upward movement. 

In the past 7 days, however, Solana has seen a 0.2% decline, reflecting a slight loss in momentum over the past week. In the last 30 days, SOL has shown a modest increase of 1.2%, indicating some positive momentum, while the token is down 46.6% year-on-year.

Despite these longer-term challenges, the recent 24-hour surge has lifted Solana’s market capitalization to $71.98 billion. The price action, though showing recovery in the short term, is still below its recent highs, leaving traders to monitor for any potential breakouts.

Can Solana Break Further Resistance?

On the daily chart, Solana is currently approaching a crucial resistance level around the 0.618 Fibonacci retracement at $128.92. This level is key for the potential continuation of its uptrend, as a sustained breakout here could lead to a move toward higher Fibonacci levels, with $132.63 (0.5 level) and $136.33 (0.382 level) acting as resistance.

However, if Solana fails to hold its support at $123.65, it could retrace further towards the 1.618 Fibonacci extension at $97.55. The Awesome Oscillator indicator shows a negative reading of 7.73, signaling that bearish momentum is still present.

If the AO starts turning positive with green bars, it could indicate a shift in momentum towards the bullish side. For now, Solana’s ability to hold above $123 and break through resistance at $128 will be crucial in determining whether it can continue its upward movement.

Solana Has Held Key Support

Adding to those levels, expert analyst Ali Martinez recently shared on X that an important support level has been held.

Martinez mentions that if Solana can break through the $131.45 and $144.62 resistance levels, it could signal a continuation of the upward movement. Notably, to reach $144, SOL’s price would need to change by approximately 13.3% from the current price of $127.