Solana Price News: SOL Hits $90 and Could Keep Rallying as Short Squeeze Intensifies

Solana (SOL) has gone up by nearly 4% in the past 24 hours and hit the $90 threshold once again, increasing the odds of a bullish breakout.

Trading volumes skyrocketed by 50% in the past 24 hours, currently accounting for 13 of the token’s circulating market cap.

This indicates strong buying interest at a point when market sentiment keeps recovering. The Crypto Fear and Greed Index jumped from a record-low of 5 two months ago, indicating Extreme Fear, to 56 at the time of writing, meaning that investors’ attitude has turned neutral.

Oil prices have retreated from a local peak of $117 to nearly $90 in the past few days, as President Trump sees the war in Iran ending “very soon”.

Reopening the Strait of Hormuz may “seal the deal” for the market, and could catalyze a much stronger rally among cryptocurrencies, especially if analysts once again see a rate cut on the table for the year.

Solana Eyes Rally to $120 If It Breaks Out of This Resistance

Data from FedWatch still shows that market participants no longer expect that the U.S. Federal Reserve will lower rates this year. Hence, any changes in these projections will likely drive a strong rally among risky assets.

Short liquidations have been rising as a result of the latest spike in crypto prices. In the past 24 hours alone, $300 million worth of short positions in the futures market were blown up. Yesterday, $20 million worth of SOL shorts were flushed out, making this the highest single-day short squeeze since March 15.

In our latest Solana price prediction, we emphasized that a break above $90 could unleash a stronger rally to $120. The daily chart shows that the Relative Strength Index (RSI) has surged to 55, indicating that bullish momentum is picking up its pace.

If the oscillator rises past the 60 mark, that should be considered an early buy signal, and it would occur right after breaking past the $90 mark.

Such a move doesn’t necessarily mean that the bear market is over, as this $120 target sits near the 200-day exponential moving average (EMA). Hence, this could still be categorized as a normal “reversion to the mean” move or a bear market rally.

However, if the price rises above this key line, the mid-term outlook for Solana would improve dramatically.

Two Buy Signals Indicate Institutional Participation in This Rally

Heading to the 4-hour chart, we got two consecutive “buy” signals recently, the last of which popped up during the American session yesterday.

These signals are “decisional” candles, featuring above-average volumes and a specific candle pattern that tends to identify institutional participation in a certain price move.

However, the selling pressure quickly ramped up as SOL hit $90. What we would like to see at this point is a breakout above $90 during today’s session or the weekend to consolidate the rally.

If that happens, the short squeeze will likely accelerate, as SOL will break out of a long-dated consolidation pattern, setting the stage for a strong move in the near term.