Solana Price News: SOL Eyes Rally to $120 as Short Squeeze Intensifies

Solana (SOL) went up by nearly 5% at some point during today’s session, as appetite for altcoins appears to be improving lately.

The token just hit a key resistance at $90, and although it retreated off this mark right after, bullish momentum seems to be strong enough to break this ceiling at some point.

Trading volumes skyrocketed after hitting this level, rising by 30% to nearly $6 billion. This figure accounts for over 11% of the token’s circulating market cap, which emphasizes the strength of the buying pressure.

Oil prices fell below $100 as there is new evidence that the war with Iran could soon be over. Even though President Trump threatened to increase the intensity of bombings if Iran does not agree to the U.S.’s terms and conditions, officials from within the White House claim to have reached a preliminary agreement.

Short Squeeze Intensifies as Altcoins Join BTC’s Rally

Over $400 million worth of short positions have been liquidated in the past 24 hours. This includes $16 million worth of SOL shorts that have been blown up as a result of today’s climb to $90.

This is the highest single-day liquidation that SOL has experienced since April 15, back when it also hit $90. The American session could consummate the breakout if enough volumes chip in to push Solana past that mark.

Interestingly, Bitcoin’s liquidations accounted for less than half of the total. This implies a shift from the recent trends, and it means that altcoins are starting to join the rally.

Solana mostly missed the latest uptick that BTC experienced, but the latest price action could be early evidence that it will start playing catch-up with the top crypto.

Since the year started, SOL has accumulated a 6.5% gain, while BTC has reaped a 17% gain, and ETH is up 10% as well.

This performance gap means that investors are prioritizing quality over returns and maintaining a cautious risk profile in the midst of highly volatile macroeconomic and geopolitical conditions.

Meanwhile, market sentiment remains neutral, with the Fear and Greed Index currently sitting at 52. This gauge recently hit 62 (Greed) for the first time since October 2025, as BTC rose above $80,000.

Solana Ecosystem Dried Up as Traders Got Burned During this Bear Market

Last week, we saw a mild recovery in the number of transactions processed by the Solana blockchain compared to the week before.

A 7.5% increase to 699 million indicates higher usage, but did little to break the strong downtrend that transaction volumes have experienced since they peaked at 959 million in early February.

Moreover, on-chain data from Artemis indicates that application and chain fees remain heavily depressed, indicating low interest in meme coins and Solana’s DeFi ecosystem. Last week, Solana dApps brought in around $15 million while the blockchain took in $4 million in fees.

Comparatively, Solana apps generated $410 million back in January 2025, back when top meme coins like TRUMP and MELANIA were launched, while their average weekly intake was around $40 to $60 million every week before this bear market started.

Under the hood, things don’t look too good for the crypto space, as demand for blockchain-based apps has faded, possibly as meme coin traders got roasted during the latest wipe-out.

Blockchain technology and its practice use cases are still quite attractive, but speculative uses have apparently lost their shine — probably until the next bull market starts.

For Solana, agentic payments could be the next big trend that lifts network usage levels and fee collection. However, AI agents are still at an early stage.

Solana Weekly Buy Signal Sets Stage for a 230% Gain

As we highlighted in our previous Solana price prediction, we just spotted an attractive buy signal in the weekly chart that yielded attractive gains the last time.

In December 2022, the last time that Solana’s weekly Relative Strength Index (RSI) hit 30, the price hit a cycle bottom and rallied strongly from $9 to $27 in just 6 months and to $200 around 15 months later.

The weekly RSI hit a similar level in March 2026, setting the stage for a strong recovery as the sell-off went too far. Solana may have hit a cycle bottom at $80, and we could now expect that the token will rally back to $200 over the next 3 to 6 months, if historical patterns repeat.

The RSI just rose above the signal line, which is often interpreted as early evidence of a shift in the direction of the asset’s price momentum. The last time the RSI made this crossover in 2022, it marked the beginning of the token’s rally.

Our target for SOL in the long term, around 12 to 24 months from now, would be $300. That means a 233% upside potential based on where the token is trading right now.

We see the $110 level as the key resistance to overcome in this higher time frame to confirm a trend reversal. If that happens, bears will likely get squeezed even more dramatically, and that could propel SOL to $150 and then $200 faster than we may expect.

Moving down to the daily chart, SOL has been in consolidation mode for months. The $90 area has been a sell wall for the token during this period. However, conditions seem to be favorable for a breakout.

We see an attractive trading opportunity if that happens, as we could set an entry price at that level after a successful breakout and subsequent retest, with a target set at $120 and a stop loss at around $85.

This trade would offer a 6x risk-reward ratio. Ideally, we would like to see a buy signal either in the daily or 4-hour time frame from our signals system to confirm that the move is being backed by institutional and whale-level volumes.

No Breakout Yet, But Buy Signals are Piling Up for SOL

We have received two consecutive buy signals in the 4-hour chart, but those have happened at price levels that are not really interesting from a technical standpoint. They could be marking the beginning of a rally past the $90 level, but that would only be confirmed if the signal pops up after the breakout.

At this point, we are still on the fence about SOL and do not favor taking a long position. However, if we break past $90 in the next couple of days and a buy signal pops up, the situation would be entirely different.

In the 4-hour chart, the RSI just hit overbought levels. We could expect a mild pullback, but not necessarily now. The price could still break $90 before retracing. We need a few more days to let the price action unfold and see what we can make out of these recent moves.