Solana has recently taken center stage among top cryptocurrencies, drawing significant attention with its sharp price movement. The price of Solana surged to $88.87, recording a daily gain of 3.84 percent and a weekly rise of 6.39 percent. With trading volumes surpassing $6.1 billion, the coin showcased robust participation in the market.
Liquidity triggers volatility
A significant share of Solana’s recent price swings has been traced to the liquidation of leveraged positions. Based on CW8900’s analyses, substantial clusters of liquidations have formed below $81 and above $89. As the price repeatedly tested the lower band, long positions were liquidated before a quick reversal to the upside. This pattern indicates that buyers stepped in at lower levels and that most activity was shaped by liquidity dynamics rather than organic demand.
The upward momentum, especially around the $90 mark, led to the liquidation of numerous short positions. This points to the rally in Solana being driven in large part by forced position closures, which in turn generated additional buying pressure on the price.
Analysts argue that Solana’s recent gains are fueled by liquidity-driven moves, questioning whether the resulting sharp rallies are sustainable or simply short-lived events detached from true market demand.
Currently, holding above $87 is seen as crucial for maintaining the uptrend. If this support gives way, analysts expect a pullback toward $84, where a new round of liquidity accumulation could occur.
Technical view: Bullish confirmation?
According to technical analysis from CryptoJobs3, the four-hour chart has revealed a clean “cup and handle” formation. After liquidity was swept from below $80, renewed buying interest supported this emerging pattern. The cup formed gradually, topping out at resistance near $93–95.
Subsequent retracements saw higher lows, marking the handle around the $84–86 range. This structure signals waning selling pressure and ongoing, stable accumulation in the market. As Solana broke above $93, more short positions were liquidated, fueling further price acceleration.
Strong initial support is seen at $90, but if that level fails, declines could extend to $86, potentially invalidating the bullish pattern. If the rally continues, the first major resistance lies at $107, with further expansion possible up to $110 if surpassed.
Monthly close and new targets
Analysts from DonWedge emphasize that Solana has reclaimed the $80–90 range amid its latest surge, turning this area from major resistance into critical support. During previous corrections, this zone marked an important hurdle for the asset. Closing above $90 could signal a notable shift in short- and mid-term market sentiment.
Sustained moves above $90 would indicate an end to the downtrend that lasted for six months, opening the door to further gains. Should the rally persist, the next significant target is $120. Long-term resistance is projected in the $160–180 and subsequently $240–300 ranges.
Conversely, if Solana fails to hold current levels, a drop back below $70 cannot be ruled out. While the market’s momentum currently favors buyers, analysts underline the importance of defending key support levels to confirm a lasting trend reversal.
