Solana (SOL) at $87: short-squeeze risk rises as open interest spikes
Solana (SOL) faces a high short-squeeze risk near the $87 level as open interest builds. The article says SOL has traded sideways in a tight range for almost three months, while leverage remains heavy.
On the daily chart, SOL is hovering close to long-term support, with price fluctuation largely between $83 and $84. A liquidation map shows a dense cluster of highly leveraged short positions around $87, described as a potential “liquidation wall.” If Solana breaks above $87, forced buy orders from short liquidations could accelerate upside quickly.
Up to now, SOL has not yet retested the $87-$85 area and remains under $84-$85. The analysis also highlights buy-side liquidity just below current price, especially around $81. That suggests a weaker move could first push SOL down to test the $81 support zone.
On the longer horizon, SOL is consolidating near the lower boundary of a large daily triangle pattern formed since 2023. Analysts note the upper triangle trendline is now acting as major resistance, compressing the trading range. If Solana clears that resistance, the next upside targets cited are $230, with $460 possible if bullish momentum strengthens.
Overall, the setup combines near-term liquidation pressure around $87 with a broader triangle breakout thesis tied to persistent consolidation and rising volume. (Not investment advice.)
Bullish
The article’s core is a potential Solana (SOL) short squeeze triggered by a “liquidation wall” near $87. When open interest concentrates around a specific level, a break can force short covering, turning leverage unwind into spot demand. This is typically bullish in the short term because price can gap or accelerate upward once liquidations begin.
In similar past episodes across crypto markets, sharp squeezes often occur when (1) price is compressed by consolidation, (2) leverage is skewed one-sided (here: shorts near $87), and (3) a nearby technical trigger is reached (the $87 resistance zone, and later the triangle’s upper trendline). If SOL fails to break $87, the same setup can flip to a downside catalyst: shorts that aren’t squeezed may keep pressure, and liquidity around $81 could become the first magnet.
Longer term, the triangle pattern since 2023 suggests the market is “waiting” for resolution. A confirmed breakout above the declining resistance trendline would shift the bias from range trading to trend formation, keeping upside targets ($230 and potentially $460) relevant. Overall, traders should treat $87 as the key event level for SOL and monitor whether buying from liquidations actually sustains above the breakout zone.