What to Know

  • Solana has risen by nearly 25% in the past 7 days and reached the previously watched $90 per token area.
  • The rally followed the U.S. Securities and Exchange Commission proposing a new regulatory framework for crypto assets.
  • Trading volumes for SOL have surged by nearly 50% to $9.5 billion.
  • The volume spike represents 17% of the asset’s circulating market cap.
  • More than $4.6 billion in short positions were liquidated across the crypto market in the past 3 days.
  • August 18 saw $2.9 billion in daily liquidations, the 8th largest single day wipeout in crypto market history.
  • SOL moved above the 200 day exponential moving average and former supply zones at $78 and $90.
  • Net inflows to ETFs linked to the altcoin have climbed to $38 million, the highest positive print since May.
  • A crossover between the 30 day and 50 day moving averages for daily active users has strengthened the bullish argument among some chart watchers.
  • Technical traders are watching for a possible pullback toward $83 as the Relative Strength Index enters overbought territory.

Solana Rally Gains Force as Crypto Risk Appetite Improves

Solana has pushed back into the center of crypto market attention after a sharp advance that carried SOL nearly 25% higher over the past 7 days. The move brought the token into the $90 per token area, a level that many technical traders had been monitoring because of its proximity to a major moving average and a prior supply zone. The rally also coincided with renewed optimism following the U.S. Securities and Exchange Commission proposing a new regulatory framework for crypto assets, a development that appears to have improved sentiment across higher beta digital assets.

The latest move is notable not only because of the size of the price gain, but also because of the market structure behind it. SOL did not simply drift higher in a quiet tape. Trading volumes jumped by nearly 50% to $9.5 billion, a level equal to 17% of the asset’s circulating market cap. That kind of turnover suggests that the breakout attracted aggressive participation from both directional buyers and short sellers forced to exit losing positions.

For crypto traders, volume matters because strong rallies that occur on thin activity can be easier to fade. By contrast, a move backed by a large expansion in turnover can signal a more meaningful change in positioning. In Solana’s case, the volume surge arrived as the token cleared several closely watched technical barriers, creating the conditions for a squeeze that rapidly amplified the upside move.

Short Liquidations Add Fuel to the Breakout

The sharp advance in Solana unfolded during a broader wave of forced liquidations across the crypto market. More than $4.6 billion worth of short positions were liquidated in the past 3 days alone. As SOL pushed above the 200 day exponential moving average and former supply zones at $78 and $90, bearish positioning became increasingly vulnerable.

Short squeezes occur when traders betting against an asset are forced to buy it back as prices rise. That forced buying can accelerate momentum, especially when price moves through levels where many traders placed stop losses or where automated risk controls begin reducing exposure. In the latest move, Solana’s break through the 200 day exponential moving average was especially important because that indicator is often used by market participants to distinguish between bearish and bullish longer term trend conditions.

The liquidation backdrop was also historically significant. August 18 recorded $2.9 billion in daily liquidations, making it the 8th largest single day wipeout in crypto market history. Past episodes of large cascade liquidations have often appeared near the early stages of new price cycles, although that pattern is not a guarantee that the same outcome will follow this time. Still, the scale of the reset suggests that a large amount of bearish leverage has already been cleared from the market.

ETF Inflows and On Chain Activity Support the Bullish Case

Beyond the price chart, Solana is receiving support from improving capital flow and network activity signals. Net inflows to ETFs linked to the altcoin have risen to $38 million, the highest positive print since May. ETF inflows can be an important sentiment gauge because they reflect demand through regulated market vehicles and can broaden the pool of participants with exposure to an asset.

Another closely watched signal is the crossover between the 30 day and 50 day moving averages for daily active users. Some market participants view this type of crossover as evidence that network activity is improving in a way that can support stronger price action. In June 2025, a similar crossover was followed by a sustained uptrend that pushed SOL from $145 to $245 over the following months.

That historical comparison has encouraged some chart watchers to argue that the latest signal could mark the beginning of another bullish phase for the token. However, the comparison should be treated as a market clue rather than a certainty. On chain momentum can support a bullish thesis, but crypto prices also remain sensitive to liquidity conditions, regulatory headlines, leverage, and broader investor risk appetite.

Fear and Greed Index Shows a Sharp Sentiment Swing

Market sentiment has shifted dramatically this week. The Crypto Fear and Greed Index moved out of Neutral territory at around 36 and reached around 76 at the time of writing, indicating that investors are now greedy. This kind of rapid swing can be constructive during early trend reversals because it shows that sidelined capital is becoming more willing to take risk.

At the same time, greed readings can also warn that a rally is becoming crowded in the short term. When sentiment changes too quickly, late buyers may enter after much of the initial move has already occurred. That can leave price vulnerable to profit taking, particularly after a vertical rally through multiple resistance areas.

For Solana, the sentiment backdrop is therefore mixed in the near term. The broader change in tone supports the idea that the token has reentered a more constructive environment. Yet the speed of the move and the strength of bullish positioning raise the risk that price may need to consolidate before attempting another sustained leg higher.

Why Traders Are Watching the $83 Area

After such a strong advance, technical traders are increasingly focused on whether SOL can hold its breakout structure during a pullback. The $90 area was important because it aligned with a former supply zone and the 200 day exponential moving average. Once price moves sharply above a key resistance level, it is common for traders to watch whether that same area can turn into support on a retest.

The Relative Strength Index has entered overbought territory, adding to the case for a possible cooling phase. Overbought does not automatically mean that a trend is about to reverse. In strong markets, momentum indicators can remain elevated while price continues higher. However, when an overbought reading appears after a near vertical movement, the odds of a pullback tend to rise as short term traders lock in gains.

Some technical traders are now watching the $83 level as a possible downside area if profit taking accelerates. A move toward that zone would not necessarily invalidate the bullish structure. Instead, it could be viewed as a normal retracement after a powerful rally, especially if the token continues to hold above major trend markers and buyers step back in near support.

Upper Wick Suggests Profit Taking Has Begun

Early signs of selling pressure are already visible in the latest candle structure. A large upper wick has developed, suggesting that buyers pushed price higher intraday but sellers became more active near the upper end of the move. Upper wicks often reflect profit taking, failed breakout attempts, or short term resistance from traders who view the rally as extended.

This does not mean that Solana’s bullish setup has failed. Rather, it indicates that the market is entering a more delicate phase after a rapid repricing. Traders who entered lower may be taking profits, while late buyers may prefer to wait for a retracement instead of chasing strength. That tug of war can create volatility around key levels such as $90 and $83.

If SOL pulls back in an orderly manner, the move could provide a more attractive entry point for market participants who missed the initial surge. If selling becomes disorderly, however, traders will look for signs that the breakout has lost momentum. The distinction between a healthy retest and a deeper failed breakout will likely depend on whether buyers defend key support and whether volume remains constructive.

Solana Outlook: Bullish Structure, Short Term Caution

The broader Solana outlook has improved after the token reclaimed major technical levels, benefited from stronger volume, and rode a wave of short liquidation pressure. Moving above the 200 day exponential moving average is an important milestone for trend followers, while the breakout through $78 and $90 shows that former supply has been challenged.

Still, the near term setup calls for caution. A nearly 25% rise in the past 7 days, a jump in the Fear and Greed Index to around 76, and an overbought Relative Strength Index all point to a market that may need to reset before attempting further upside. A pullback toward $83 would be consistent with normal post rally behavior and could help determine whether buyers remain committed at higher levels.

If bulls defend the pullback and momentum stabilizes, market participants may continue to discuss higher targets, including the possibility of SOL eventually attempting a broader move toward $150. That scenario remains conditional on the market holding key support, maintaining improved sentiment, and avoiding a sharp reversal in crypto liquidity conditions. For now, Solana has entered a more bullish technical zone, but the next test may come from how well it handles profit taking.

Frequently Asked Questions (FAQs)

Why did Solana rise nearly 25% in the past 7 days?

Solana rallied as crypto sentiment improved after the U.S. Securities and Exchange Commission proposed a new regulatory framework for crypto assets. The move was also strengthened by rising trading volume and a large wave of short liquidations.

What price level did SOL recently reach?

SOL reached the $90 per token area, a level that was important because it aligned with the 200 day exponential moving average and a former supply zone watched by technical traders.

How much did Solana trading volume increase?

Trading volumes for Solana surged by nearly 50% to $9.5 billion. That volume represented 17% of the asset’s circulating market cap, showing a major increase in market activity.

What role did short liquidations play in the rally?

More than $4.6 billion in short positions were liquidated in the past 3 days across the crypto market. As Solana moved above major resistance levels, forced buying from short sellers likely helped accelerate the rally.

Why is August 18 important for crypto liquidations?

August 18 recorded $2.9 billion in daily liquidations, making it the 8th largest single day wipeout in crypto market history. Such large liquidation events have often appeared near the start of new market cycles, although they do not guarantee one.

What does the ETF inflow figure suggest?

Net inflows to ETFs linked to Solana reached $38 million, the highest positive print since May. This suggests improving demand through investment vehicles tied to the altcoin.

Why are traders watching the $83 level?

Some technical traders see $83 as a possible downside area if SOL cools after its sharp rally. A move toward that level could represent normal profit taking rather than a full trend reversal, depending on how buyers respond.

Is Solana officially in a bull market?

Solana has moved into more bullish technical territory by clearing the 200 day exponential moving average and key supply zones. However, whether a larger bull market develops will depend on continued support, sentiment, and market liquidity.

Could SOL still move toward $150?

Some market participants are watching the possibility of a broader move toward $150 if Solana holds key support and momentum remains constructive. That outcome remains conditional and could be delayed by a near term pullback.

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