Solana Surges 2.3% as SOL Targets $90 Breakout
Solana (SOL) jumped about 2.3% in 24 hours and is testing the $87–90 area, with trading around $86.97. The move has sparked a derivatives squeeze: more than $17M in SOL shorts were liquidated as price ran ahead of expectations.
Traders view this as a potential trend shift. Analysts say SOL broke above a year-long downward trendline, but a bullish continuation likely requires a decisive close above the $90 resistance. If SOL fails at $90, the article flags a possible pullback toward the $86–84 zone.
On the upside, bulls point to strengthening intraday momentum. Ali Charts highlights the $89–90 range as the key trigger, while Crypto Melih notes strong hourly closes above roughly $89.50–90.75 could open room toward $96.90 and higher targets.
However, on-chain data is mixed. Santiment reports weekly active addresses have fallen from about 5.01M (early February) to around 2.89M, and transacting addresses are declining despite improving sentiment. This suggests optimism may be outpacing actual network usage.
Key levels to watch for SOL: resistance at $89–90 (especially $90 for confirmation), support near $84–85, and a deeper downside area around $78–80 if support breaks.
Bullish
The news is bullish for SOL in the short term because spot momentum appears to be catching up with a technical breakout narrative, and the reported liquidation of over $17M in SOL shorts can mechanically amplify upward moves. This resembles past “breakout + short squeeze” patterns where forced buying accelerates price until traders test the nearest major resistance (here, $90).
That said, the article also flags a key risk: declining active and transacting addresses on-chain. Similar historical cases show that when on-chain activity lags behind price, rallies can stall at resistance and turn into whipsaws. Therefore, traders may see bullish potential, but confirmation matters.
Practically, watch for SOL to hold above the broken downtrend line and to close decisively above $90. If that happens, upside targets toward ~$96.9 and possibly higher become more likely. If SOL rejects $90, the likely path is a retracement toward $86–84, and a further breakdown could open $78–80. Longer term, sustained improvement in network usage would be needed to convert this into durable bullish structure rather than a one-off squeeze.