Solana (SOL) has recently become a focal point in the cryptocurrency market due to a notable tightening in its price range. The cryptocurrency is trading near a long-term support line on the daily chart, with particular attention on a significant accumulation of short positions targeting the $87 level. This dynamic marks a critical decision zone, where short-term leverage pressures intersect with broader price action, prompting investors to closely weigh their next move.
Short squeeze threat at $87 resistance
Market analysis indicates that SOL’s price is currently fluctuating between $83 and $84. According to the liquidation map, there is a dense cluster of highly leveraged short positions around the $87 mark, which now acts as a potential “liquidation wall.” Any price movement towards this level could quickly trigger a short squeeze, as traders with those short positions are forced to close them.
In such a scenario, the automatic closure of shorts could spark a surge of buy orders, propelling the price upward at a rapid pace. However, Solana has so far remained below this critical range, hovering under $84-$85 and not yet testing the $87 zone.
If SOL climbs to the $87 level, the heavy concentration of highly leveraged short positions could face substantial liquidity risk, making a sharp upward reaction increasingly likely in the market.
On the opposite end, there is sizable buy-side liquidity positioned just below the current price, especially around the $81 level. This raises the prospect of an initial downward move testing support in that region if downward pressure increases.
Long-term triangle pattern and support levels
From a broader perspective, Solana has been moving near the lower boundary of a major triangle formation that has persisted on the daily chart since 2023. Analysts tracking the SOL/USDT daily chart note that the asset has undergone a wide-ranging correction from its last cycle high, with the support line playing a key role in halting further declines.
The upper boundary of the triangle now acts as primary resistance. This resistance is characterized by a sloping trendline extending toward the projected 2025 peak, compressing SOL’s trading window. Chart projections suggest that if SOL can break above this resistance, $230 may become its next major target, with $460 a possible reach should bullish momentum accelerate.
At present, Solana’s most crucial task is to protect its underlying support line and then confirm an upward breakout above the declining resistance trendline. The price has been confined within this triangular pattern for about 86 days, during which time total trading volume has surged to $267.24 million. Analysts believe this extended period of consolidation signals that SOL is preparing for a decisive breakout.
