Solana Shorts in Panic Mode – Here’s What Could Rocket SOL to New Highs!

Solana bears are scrambling as bullish momentum builds—could this be the catalyst for SOL's next explosive rally?

Short sellers betting against Solana are getting squeezed as the network's fundamentals strengthen. With developer activity surging and institutional interest growing, the stage is set for a potential short squeeze.

The crypto market's favorite 'Ethereum killer' keeps defying skeptics—while traditional finance still can't tell a blockchain from a Excel spreadsheet.

Can retail confidence drive momentum?

Data from Binance showed that 74.83% of traders were holding long positions, while only 25.17% remained short. The Long/Short Account was at 2.97, highlighting a strong bullish tilt among retail participants.

This heavy long bias reflected growing confidence in a potential reversal.

However, such an imbalance may become a risk if price fails to deliver an upward breakout, as overly skewed positioning can lead to a rapid cascade of liquidations if market sentiment shifts abruptly.

Source: Coinglass

Funding Rates rise without a leverage spike

On Binance, Funding Rates for SOL/USDT perpetual contracts remained marginally positive, most recently printing at 0.001%. This indicated that long holders had paid a small premium to maintain positions.

Though this signals moderate bullish momentum, the absence of extreme funding spikes suggest that the current rally isn’t yet fueled by excessive leverage.

Hence, traders remain cautiously optimistic, and the market structure looks stable enough to support a gradual breakout rather than a volatile surge.

Source: Santiment

Hidden upside through repeated liquidations?

Liquidation data revealed a significant bias toward short liquidations. As of the 20th of June, total short liquidations reached $192K, compared to $1.21M in long liquidations.

Binance accounted for $68K of short liquidations, with OKX following at $102K. These figures imply that short sellers are frequently caught offside, contributing to upward momentum through forced exits.

This trend may persist if price gradually pushes higher, reinforcing the squeeze effect and supporting further upside.

Source: Coinglass

Is SOL’s price preparing for a breakout?

At press time, Solana remained range-bound between $140 and $152, trading just under the Bollinger Band mid-line at $152.01. MACD values are flattening at -3.26, suggesting weakening bearish pressure.

The price hugging the lower Bollinger Band with narrowing bands signaled reduced volatility, often a precursor to a breakout.

For bullish momentum to confirm, SOL must reclaim the 20-SMA mid-band and flip it into support. Until then, the market waits for a definitive direction.

Source: Trading View

Solana’s sentiment setup shows promising alignment between retail and smart money. The market structure remains healthy, with no signs of excessive leverage or euphoria. 

However, a true breakout will depend on Solana’s ability to reclaim technical levels like the Bollinger mid-band. 

Until then, momentum remains latent, but the foundation for a potential bullish MOVE appears firmly in place.