Solana Price News: Strong Short Squeeze Could Push SOL Back to $97

Solana (SOL) has gone up by 20% in the past 7 days after a key resistance breakout triggered a strong short squeeze.

The price of this altcoin rose above $80 for the first time in 30 days as bulls managed to push through the $75 ceiling.

As a result, a significant volume of short positions has been blown up in the past couple of days. According to data from CoinGlass, over $24 million worth of shorts were liquidated today, this being the second-highest single-day wipeout in the past 90 days.

We anticipated such a move in our latest Solana price prediction, as a significant volume of stop orders was likely sitting above the $80 threshold.

Now the odds of a retest of the $90 ceiling are high, meaning a 10% upside potential in the near term.

Solana Just Introduced Decentralized Governance and Voting

Trading volumes have jumped by 33% in the past 24 hours alone, surging to $48 billion. This figure accounts for nearly 10% of the asset’s circulating market cap.

This week, Solana introduced governance proposals, allowing validators to participate in major decisions concerning the blockchain’s technical framework.

Any validator with at least 100,000 delegated SOL can propose and vote on different matters. Decentralized governance is part of the core principles of blockchain technology, and this is a huge step for what has been a relatively centralized project to hand over Solana’s control to its community.

According to on-chain data from Token Terminal, Solana currently has 725 active validators. These are the designated nodes in charge of reviewing and executing the blockchain’s transactions.

Today’s strong uptick coincides with the rollout of this new feature. We don’t believe it is the cause of it, but it might be contributing to pushing Solana’s social mentions to higher levels and could create some FOMO.

SOL Could Retest Its 200-Day EMA at $97 Soon

Looking at the daily chart, we can see that SOL just pushed past the $75 ceiling. This was our least expected scenario due to unfavorable macro conditions and heavily depressed sentiment readings, but bulls managed to get it done.

Now we are seeing a strong single-day move that is being accompanied by a project-specific narrative. If we close the day with above-average trading volumes, our signals system will likely trigger a powerful buy signal in the daily chart at a key level.

This could set the stage for a move to $90 at least or even a retest of the 200-day exponential moving average (EMA) at $97.

The Relative Strength Index (RSI) just rose to 65, already confirming a buy signal as positive momentum is accelerating. If the price pulls back to $80, that would create an interesting trading opportunity offering a 3x risk-reward ratio.

This short position would set its target at $97 and the stop-price below the $77 support. Despite this interesting jump, we still maintain a bearish outlook for SOL in the mid-term as market conditions have deteriorated.