Solana Soars 11% as Bears Get Rekt—Massive Short Squeeze Ignites Rally

Solana's native token SOL just delivered a brutal lesson to crypto shorts—an 11% price surge liquidated overleveraged bears in a classic squeeze play.

The pump-and-dump whisperers (aka 'tradFi analysts') will call it irrational—but when liquidity's this thin, even dead cats bounce with vengeance.

Key drivers:

- Forced buying from liquidations turbocharged the move

- Spot volumes spiked 3x average as stops got run

- Open interest reset clears runway for potential continuation

Just another Wednesday in crypto—where 'efficient markets' means efficiently separating dumb money from slightly less dumb money.

The same pattern was confirmed by short-term timeframes, with losses hitting the 1-hour, 4-hour, and 12-hour windows. According to SolanaFloor, $60 million worth of short positions were liquidated in the last 24 hours, with $39 million via on-chain perps and $19 million on centralized exchanges. Therefore, market volatility heavily favored buyers at the expense of bearish traders.

SOL LIQUIDATIONS: In the last 24 hours, nearly $60M in $SOL short positions were liquidated as SOL surged back above $140. Onchain liquidations via @Solana-based perps ($39M) surpassed those on CEXs, with only $19M liquidated on centralized exchanges. pic.twitter.com/6zxmc7HFzu

Most of Solana’s trading happened on major exchanges. Binance led with $5.82 billion, followed by MEXC, Bybit, OKX, and Gate. Smaller platforms handled the rest. This shows that both big and small traders mainly used top exchanges, where liquidity is strongest, to drive the recent price surge.

DeFi growth and getwork metrics

Solana’s DeFi ecosystem also proved robust. The total value locked (TVL) climbed to $9.12 billion, up over 10% in the last 24 hours, per DefiLlama. Stablecoins on the network eclipsed $15 billion, with decentralized exchanges trading $3.54 billion in daily volume.

Adding to this, the perpetuals added another $1.32 billion, proving that a lot of trading is going on within the network. The daily active app revenue reached $4.34 million, and daily active users increased to 2.23 million. 

Besides this, the inflow of new funds of $10.8 million boosted Solana’s market cap to $79.58 billion. Overall, the network keeps growing, boosted by increasing demand and greater liquidity.

Technical analysis and market outlook

On the technical side, TradingView data shows Solana experienced earlier weakness below the 50-period Exponential Moving Average (EMA) and later climbed above the EMA around $135 to reach $141.

This crossover was an indication that the buyers were taking control of the market, while the RSI of 63 reflected growing confidence without entering overbought territory. The 50-period EMA describes recent price tendencies, while the RSI is one indicator of buying or selling pressure in the market.

Analyst Mayank Dudeja of SPYONGEMS highlighted that SOL is bouncing from the $131–$137 demand zone with rising volume. He noted, “Price is now testing the descending trendline, hinting at a momentum shift. Daily close above $150 → breakout confirmed. Targets → $170–$190. Rejection from $145–$150 → retest back to $135–$131.”

#SOL/USDT – 1D Update

SOL is bouncing cleanly from the $131–$137 demand zone with rising volume — buyers defending the area again.

Price is now testing the descending trendline, hinting at a momentum shift.

Bullish case:
Daily close above $150 → breakout confirmed
Targets →… pic.twitter.com/8Q94VOQoSW

Solana’s recent rise shows the risk short sellers face and reflects renewed activity in its DeFi network. Strong trading volumes and technical signals suggest momentum is turning positive. The $150 level is one to watch, as holding above it could indicate further price gains.

Also Read: Bitcoin Climbs Back Above $90K Amid Regulatory Optimism