Key Takeaways:
Solana’s native token (SOL) pushed past the key $90 resistance level on Wednesday, a move that coincided with over $400 million in leveraged short liquidations across the cryptocurrency market in the last 24 hours.
Data from Coinglass shows the rally was backed by a surge in new leverage, with open interest in SOL futures rising more than 7% to $5.69 billion. “A positive funding rate of 0.0059% reflects a bullish tilt in positioning, as traders are willing to pay a premium to go long,” the derivatives data provider noted.
The sharp price increase forced the liquidation of $16 million in SOL short positions, the highest single-day amount since April 15. The move was further supported by institutional interest, with Solana-focused ETFs recording consecutive days of inflows totaling over $5 million, according to data from one provider. The long-to-short ratio for SOL also climbed to 1.1442 from 1.0319, indicating a rise in bullish bets.
This rally toward a potential $100 psychological level comes as technical indicators turn bullish, but underlying network fundamentals paint a more mixed picture. While the price action suggests a catch-up rally to Bitcoin and Ethereum, which have posted larger year-to-date gains, on-chain activity on Solana has not kept pace. Data from Artemis shows weekly transaction counts on the network, while up 7.5% to 699 million, are still well below their peak of 959 million from early February.
Furthermore, application and chain fees remain significantly lower than levels seen in early 2025, indicating that demand for Solana’s DeFi ecosystem and meme coins has not yet recovered from the recent market wipeout. Last week, dApps generated around $15 million in fees, a fraction of the $410 million seen during the peak of meme coin activity in January 2025.
From a technical perspective, the breakout above $90 is significant. The daily chart shows this level has acted as a strong resistance barrier for months. A successful retest of this zone could open a path toward the next major resistance at $120. However, momentum indicators like the Relative Strength Index (RSI) on the 4-hour chart have reached overbought territory at 77, suggesting a pullback could occur. Longer-term, a weekly RSI signal that historically marked a cycle bottom in December 2022 recently reappeared, suggesting a potential rally back toward the $200 level over the next three to six months if the pattern holds.
This article is for informational purposes only and does not constitute investment advice.
