Solana Price Hits $100 as SOL Faces 10% Pullback Risk

Solana (SOL) has gone up by 25% in the past 7 days after a massive short squeeze catapulted the token above two key resistances.

This altcoin just hit the $100 mark for the first time since February 2026, and the selling pressure has increased as early buyers have started to cash out on their successful bets.

A 10% pullback could be on the table as the rally has already gone too high, too fast. However, we maintain a bullish outlook in the mid-term, as both technical indicators and on-chain data are flashing buy signals.

Trading volume currently stands at $3.5 billion, accounting for over 6% of the assets circulating market cap. This figure indicates persistent interest in the token, following the U.S. Securities and Exchange Commission’s proposed rules for the crypto space.

On August 18, nearly $100 million worth of short Solana positions were blown up as the token rose past the 200-day exponential moving average (EMA). This is the token’s second-highest single-day wipeout for bears on record, only surpassed by the historic October 10 flash crash.

In previous instances, short squeezes of this magnitude have marked the end of bearish cycles as they have forced sellers to go back to their caves to lick their massive wounds, leaving bulls with open territory to start pushing prices to higher levels.

Market Sentiment Flipped from Fear to Extreme Greed in Just a Few Days

Wall Street seems to be supporting this rally, as Solana-linked exchange-traded funds (ETFs) attracted $95 million in net inflows in the past 6 days.

Market sentiment has also shifted dramatically, as the Crypto Fear and Greed Index swung from Fear to Extreme Greed in just a few days. This sentiment gauge currently sits at 80 — the highest level it has reached since December 2024, back when SOL traded above the $200 mark.

Turning to on-chain data, protocol fees have recovered this month and could finish at levels not seen since January this year, back when Solana traded at around $120 per token.

DEX volumes have not responded in the same way. This suggests that traders are not yet coming back to trading memecoins. Nonetheless, these metrics seem to indicate that a short-term rally for SOL is justified, especially as the regulatory backdrop in the United States continues to improve.

SOL Eyes Pullback to $90 Before Its Next Leg Up

Looking at the daily chart, we expect a pullback to the $90 area if the selling pressure ramps up this week. The $100 level has already proven to be a tough ceiling to crack, and early buyers may have already exhausted most of their ammunition.

Although the pullback could be milder, the market typically looks for areas of strong liquidity to ignite the next big move. In this case, the $90 area is both psychologically and technically relevant, as both the 200-day exponential moving average (EMA) and a horizontal resistance sit right there.

Meanwhile, institutions have probably placed their buy orders at that area, as this is a round number. The Relative Strength Index (RSI) has already hit overbought, which increases the odds of a short-term drop, even though it also marks a strong shift in the token’s momentum in favor of bulls, meaning that the mid-term outlook is positive.

The next target for SOL, if the rally resumes, would be $120, meaning a 33% upside potential for those who manage to get their hands on the token at $90, assuming it gets there.