Solana (SOL) began the trading session on Wednesday at a significant level as the price action continued to tighten within the multi-week range. The technical signals and on-chain data continued to converge, as the market remained uncertain whether the next price action would be a breakdown or a reversal.

The market has continued to consolidate after the recent price action on the downside. The price action has returned to the area that has repeatedly influenced the market over the past two months. The buyers and sellers have not yet taken any firm action.

On Wednesday, January 28, Solana is trading at $127.32, according to CoinMarketCap data. The asset has increased by 2.83% over the past 24 hours. The trading volume has increased by 5.27% to $3.74 billion. The weekly chart shows a decline of only 0.20%. 

Source: CoinMarketCap

Solana Reenters Its Multi-Week Trading Range

Analyst Umair Crypto highlighted that Solana’s price action is rejected at $141. It then moved to $148 and failed to flip $150. This led to a drop of almost 20% to $117. Now, it has returned to the two-month range and is testing the significant level that has repeatedly influenced the market.

If the buyers take over the market, the first area to look for is around $132. Breaking past this level may lead to the range point of control at $138.

The broader range is near $30, which limits the conviction of a trade in the middle of the range. If the price is accepted below $120, the structure will move into a bearish phase. If the price breaks above $150, the structure will move into a bullish phase. 

Source: X

Also Read: Solana (SOL) Tests $120–$125 Support as Buyers Step In Toward $150–$300

Moreover, another analyst, Sniper Trading, mentioned that the price of Solana is near a major overhead resistance level. He also said that a clean break and retest are needed for confirmation of the support level. 

The analyst’s strategy is to take a long position on a break and retest of the $128 mark. The targets are $139 to $154, $170 to $190, and a stop loss below $124.

Source: X

Open Interest Drop and FOMC Shape Market Direction

Analysts said that the reaction of the market to the announcement of the FOMC decision could impact the short-term momentum of the price. 

According to CoinGlass data, the trading volume increased by 1.69% and now stands at $9.97 billion. The open interest dropped by 1.47% to $7.58 billion. The OI-weighted funding rate is at 0.0080%. 

Source: CoinGlass

The price of Solana is still within a large range. However, the price’s response close to the lower end of the range determines the next significant move.

Also Read: Hyperliquid (HYPE) Surges 26% as Bullish Sentiment Returns