SOL rallies after $281M shorts squeeze; Solana range high
Solana (SOL) rebounded after about $281M in short liquidations over the past 24 hours, triggering a fast recovery back into its prior multi-month consolidation range. SOL traded near $81.9 on the Coinbase daily chart after recovering from a June breakdown that flushed the market down more than 20%.
Traders are now focused on whether Solana can hold the key support zone around $78. The range retake would be reinforced by a first daily close back above the former range. If SOL loses $78, the squeeze-driven rebound could fade.
On the upside, SOL is watching the $80–$82 region as a near-term decision area (linked to Fibonacci levels). Further resistance is flagged between $90 and $100, followed by higher Fibonacci targets near $112.26, then ~$137.29 and ~$154.87. Price is still far below prior highs above $220, so confirmation for a stronger trend reversal likely requires a clean break and hold above nearby resistance.
Momentum indicators suggest improving conditions: RSI is around 65.9 (strong buying but approaching overbought), while MACD is slightly positive. Overall, the Solana short squeeze helped force bearish positioning out quickly, but traders will likely wait for follow-through above $90–$100 before turning more aggressive.
Bullish
The report highlights a classic short-squeeze mechanism: around $281M of SOL short liquidations helped drive a rapid rebound back into Solana’s prior consolidation band. This typically supports near-term upside and boosts trader confidence, especially when price recaptures a former range.
However, the bullish case is not fully confirmed yet. SOL remains well below earlier highs (above $220), and resistance is identified overhead at $90–$100. In similar past range-recapture moves, markets often see an initial squeeze-driven rally followed by either (1) continuation after a clean break above resistance, or (2) retracement if support (notably $78) fails.
So, expect bullish short-term behavior as long as SOL holds the $78 support and keeps testing the $80–$82 decision zone. Longer-term direction depends on whether SOL can sustain a break through $90–$100; failure there would likely turn this move into a corrective bounce rather than a full trend reversal.