Solana (SOL), a prominent blockchain platform known for its high-speed and scalable network, surged by 25% over the past week, breaking above the $90 price mark for the first time in months. This sharp rally came after the US Securities and Exchange Commission introduced a new regulatory framework targeting cryptocurrencies.
Massive liquidations upend market
Trading activity in SOL intensified significantly as volume climbed nearly 50%, reaching $9.5 billion. This volume accounts for 17% of the total circulating market value of SOL, reflecting aggressive buying pressure and rising investor interest.
These developments triggered a wave of forced closures for traders betting on a price decrease. Over a three-day span, short positions worth $4.6 billion were liquidated across the crypto market. Notably, August 18 alone registered $2.9 billion in short liquidations, ranking as the eighth-largest single-day liquidation event in the sector’s history.
August 18 saw short positions worth $2.9 billion wiped out, one of the highest daily liquidations ever in the crypto market.
SOL not only broke past its 200-day exponential moving average (EMA), but also overcame long-standing price supply zones at $78 and $90, both previously acting as stubborn resistance. The asset closed at $93.72 on August 21, marking a daily gain of 6.94%.
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AAPLThe Kobeissi Letter, a widely followed financial analysis platform, noted that SOL moved above $100 for the first time since February 3, emphasizing renewed strength and rising momentum across digital assets.
On-chain signals and institutional inflows
A key on-chain indicator has reappeared, one with a track record of preceding rallies. The crossing of 30-day and 50-day moving averages for daily active users was last observed in June 2025, an event previously linked with SOL’s price soaring from $145 to $245 in a matter of months.
This same crossover is evident again according to blockchain analytics firm Santiment, who tracks address activity and user engagement on major blockchain networks.
Mini dictionary: Santiment, an analytics provider specializing in real-time blockchain and on-chain behavior analysis, offers data on metrics such as daily active addresses and sentiment shifts that help assess market dynamics.
Net inflows into SOL-linked exchange-traded fund (ETF) products rose to $38 million, the highest level since May, indicating a return of institutional capital to the network. During this period, the widely watched Crypto Fear and Greed Index climbed from 36 to 76, showing a sharp switch from neutral to highly optimistic investor sentiment.
| Metric | Previous Value | Current Value |
|---|---|---|
| SOL price | $73 | $91.89 |
| Trading volume | $6.3 billion | $9.5 billion |
| ETF net inflows | – | $38 million |
| Fear & Greed Index | 36 | 76 |
Technical levels and short-term risks
Technical indicators show Solana is now in overbought territory. The daily candle features a considerable upper wick, suggesting increased selling near current levels as some traders take profits.
Analysts are now watching $83 as a potential support zone if a price pullback occurs, with the 200-day EMA also nearby and likely to serve as an additional floor. Before this recent breakout, SOL had previously failed to hold above $90 on two separate occasions. The closing price above that level signals potential for a sustained move higher if buying persists.
Technical analysts are monitoring the $83 support level, with the 200-day EMA closely aligned as further downside protection.
Should Solana manage to stay above $90, technical targets are projected in the mid-$120 range. Failure to hold this price could see the asset return to a pattern of declining highs. As of now, SOL trades at $91.89, down 9.15% on the day, indicating that the anticipated retracement may have begun.
