Solana (SOL) recorded a sharp rally this week, breaking above key resistance levels and drawing renewed attention from traders and investors. The digital asset climbed from the lower $80s to a high near $97 in just a few days, gaining 8.7% over the last 24 hours and about 25% in the past week. With a market capitalization of $56.56 billion, Solana reentered price zones not seen in over three months.
Market momentum accelerates after SEC proposal
A major boost to Solana’s momentum arrived following the US Securities and Exchange Commission’s announcement regarding a new regulatory framework for digital assets. This policy shift altered market sentiment across the cryptocurrency sector, encouraging bullish activity.
SOL’s trading volume spiked, increasing by approximately 50% to $9.5 billion. This uptick in volume, when compared to the current market cap, highlighted exceptional activity as investors positioned for further gains. The influx of trading triggered a dramatic short squeeze, with more than $4.6 billion in bearish positions liquidated within three days.
On August 18 alone, liquidations totaled $2.9 billion, which marked the eighth-largest single-day elimination event in cryptocurrency trading history.
ETH
SOL
BSC
ROBINHOOD
USDT
AAPL| Date | Single-Day Liquidations | Record Position |
|---|---|---|
| August 18 | $2.9 billion | 8th largest |
Meanwhile, the Crypto Fear and Greed Index jumped from around 36, a neutral reading, to 76, indicating increasing optimism and risk appetite among investors.
Technical breakout and resistance zones
SOL advanced above its 200-day exponential moving average (EMA) and surpassed resistance levels at $78 and $90. This achievement represented the first time in over three months that SOL traded above $90. These technical developments reinforced the bullish outlook held by market participants.
Market analyst Ran Neuner, known for his insights on digital assets, commented that Solana spent approximately 202 days in a consolidation phase before its recent breakout. The top of this range was located around $97 to $100, which now acts as a crucial battleground for the next price move.
Ran Neuner highlighted that Solana traded within its accumulation range for 202 days, emphasizing that breaking above the $100 mark could signal a prolonged upward move if confirmed by a daily closing price and retest.
Technical analyst Altcoin Sherpa has identified $120 as the next significant resistance, should the price manage to close above $100. Similarly, trader KillaXBT pointed out via social media that SOL has yielded a 50% gain from a prior trade entry, and considered the $100–$105 range as the next major hurdle.
KillaXBT explained that after breaking through $100–$105, Solana could see momentum drive its price into the $120s, building on recent strength.
Blockchain activity and ETF flows strengthen outlook
Solana has also seen capital inflows into exchange-traded funds (ETFs) tied to the network, with $38 million recorded as the highest positive reading since May. A technical crossover between the 30-day and 50-day moving averages for daily active users signaled bullish sentiment ahead of the current price surge.
The last time this specific user activity crossover occurred, in June 2025, SOL climbed from $145 to $245 over subsequent months.
Mini dictionary: 200-day exponential moving average (EMA), a technical analysis indicator that highlights the average closing price for an asset over the previous 200 days, weighting recent prices more heavily to track long-term trend strength.
Key support and resistance levels ahead
Short-term support is set between $90 and $92, with the 200-day EMA currently offering a backstop around $83. Should weakness occur, a correction to these support zones is possible.
On the upside, analysts spotlight immediate resistance at $95–$100, followed by target zones at $110–$120, $140, and longer-term projections as high as $200, contingent on sustained momentum.
