Solana News Today: Solana Surges 22% as $195 Breakout Fuels $237 Bull Case

Solana (SOL) has experienced a significant price surge in recent days, breaking above a critical resistance level and signaling potential further gains. Over the past week, the cryptocurrency has risen nearly 22%, with a 13% increase recorded within 24 hours alone. The price has surpassed $195, a key resistance level that had held for weeks and is associated with the 0.786 Fibonacci retracement level. This breakout has generated optimism among traders and analysts about the possibility of reaching $237 and, eventually, $300 [1].

The upward momentum appears to be supported by both macroeconomic and technical factors. Recent U.S. inflation data came in below expectations, boosting speculation that the Federal Reserve may cut interest rates as early as September. Market sentiment reflects this, with over a 94% probability of a rate cut in that month, according to market data [1]. This macroeconomic backdrop has contributed to a broader bullish mood in the crypto space.

Derivatives data also highlights growing confidence in Solana’s upward trajectory. Open Interest on major platforms has risen by 15% in the past week, and the long/short ratio on Binance stands at 2.08, indicating that more than 67% of traders are positioned for further gains [1]. These figures suggest strong participation and a shift in market sentiment toward bullish expectations.

On-chain data further reinforces the positive outlook. Over $85 million worth of Solana left exchanges on August 11, a sign that traders are moving their holdings to private wallets rather than keeping them on trading platforms. This trend typically signals reduced selling pressure and increased long-term confidence in the asset [1]. Over the past month, outflows have consistently exceeded inflows, pointing to a strengthening buyer presence.

Technical analysis of Solana’s price chart reveals a breakout from a converging wedge pattern, a formation that is often associated with trend reversals when the price breaks above the upper boundary. The breakout above $195 was accompanied by rising volume, adding credibility to the move [1]. Looking ahead, key Fibonacci extension levels suggest that $206, $237 (1.618 extension), and $287 (2.618 extension) are potential price targets if the upward momentum continues.

Another factor supporting a continued rise is the presence of large short positions that are now at risk of liquidation. According to Bitget’s SOL/USDT liquidation map, a significant cluster of short positions between $165 and $195 has already been wiped out as the price surged. The largest short liquidation target now sits at $219.16, where nearly $95 million in short positions could be forced to buy, providing additional upward pressure [1].

The Chaikin Money Flow (CMF) indicator currently stands at 0.12, reflecting positive buying pressure, though not at extreme levels. This is below the 0.35 peak seen in July, suggesting that there is still room for increased demand before the market becomes overbought. If the CMF climbs above 0.16 and holds for a week, it would confirm strong buying interest and bolster the case for a move toward $237 [1].

Traders remain cautious, however, as a pullback below $187 could indicate that the current rally is losing steam. Historical patterns suggest that such corrections are not uncommon following rapid price movements, especially in volatile assets like Solana. That said, the current technical and on-chain signals indicate that the bullish case remains intact, provided the price holds above key support levels.

With the price now approaching $200, market participants are watching closely to see whether this psychological level will act as a new resistance or be overcome with continued momentum. The next major test lies at $206, followed by potential short liquidation activity near $219. If these levels are cleared, the next target of $237 becomes increasingly likely, and further gains beyond that are not out of the question under sustained bullish conditions [1].

Source:

[1] Solana (SOL) Price: Cryptocurrency Breaks $195 Resistance as Bulls Target $237 (https://blockonomi.com/solana-sol-price-cryptocurrency-breaks-195-resistance-as-bulls-target-237/)