Solana Rides Bullish Wave as Shorts Get Rekt – Is $200 Next?

Solana's price action just flipped the script. Short sellers are scrambling for cover as SOL builds momentum—proof that even crypto's most cynical traders can't fight the tape forever.

Why the squeeze? The network's throughput keeps humiliating Ethereum's gas fees, and developers are ditching 'slow chains' like refugees from a sinking ship. Meanwhile, VC funds quietly accumulate positions—because nothing screams 'contrarian play' like betting on an asset that already pumped 300% this year.

Technical breakout? Check. Funding rates normalizing? Yep. Retail FOMO creeping in? Just wait for the Coinbase trending alert. The only thing missing is a Vitalik subtweet to really pour gasoline on this rally.

Of course, Wall Street's crypto tourists will call it 'irrational' right up until their quant models flip long. By then, SOL holders will be busy spending their gains on NFT yachts.

Sentiment Turns Positive Across the Board

Market sentiment has undergone a notable shift. According to Market Prophit, the smart money sentiment score stands at 1.79, a bullish reading that reflects increased interest from institutional players. At the same time, crowd sentiment — a metric that tracks the general retail mood — also leans positive, though with slightly more caution.

This alignment between retail and institutional sentiment often creates a strong base for a sustainable move. Such convergence suggests that investors, regardless of their scale, are beginning to anticipate a turnaround in Solana’s price direction.

Retail Traders Go Long, But Risks Remain

Binance data reveals that 74.83% of traders are holding long positions on SOL/USDT, compared to just 25.17% short. This gives a Long/Short Ratio of 2.97 — a figure that underscores a heavily bullish bias. While this shows growing confidence among retail participants, it also introduces the risk of a potential liquidation cascade if the price fails to break upward and instead reverses.

In highly Leveraged markets, excessive long positioning can backfire quickly. If support levels are breached, panic selling can lead to rapid declines. However, in the case of Solana, there is currently no indication of extreme leverage buildup, which tempers those concerns for now.

Leverage and Liquidation Data Support a Gradual Breakout

Interestingly, funding rates for SOL perpetual contracts have stayed relatively neutral. The most recent funding rate was just 0.001%, indicating that the bullish activity is not being driven by excessive leverage. In other words, the rally is forming on a more stable base, not just speculative froth.

Liquidation data also supports the idea that short sellers are under pressure. On June 20th alone, Solana saw $192K in short liquidations, while long liquidations were far higher at $1.21 million — a sign that volatility has been punishing both sides but increasingly favors upside movement. Most of the short liquidations came from major exchanges like Binance and OKX, suggesting that bearish traders were caught off guard during brief rallies.

Technical Setup: Bollinger Bands and the $152 Barrier

Technically, SOL remains range-bound, trading between $140 and $152. The Bollinger Bands show a narrowing spread, which typically precedes a breakout. The key level to watch is $152, which represents the 20-period Simple Moving Average (SMA) on the Bollinger setup.

A successful close above this mid-band could flip it into a support level and trigger a wave of momentum-driven buying. Until that happens, the market may continue to range sideways as traders wait for a stronger signal.

The MACD has also flattened out, suggesting that selling pressure has weakened, but bulls have not yet taken full control. This standoff hints that the next few days could be crucial in determining Solana’s short-term direction.

Conclusion: Breakout Brewing Beneath the Surface

Solana’s current setup paints a picture of a market in anticipation. The surge in user sentiment, the consistent demand from both retail and institutional traders, and the absence of over-leveraged positions create favorable conditions for a potential breakout. While risks remain — especially with high long positioning — the foundation for a bullish MOVE is forming.

If Solana can reclaim and hold above the $152 mark, a breakout could follow, possibly opening the door for a run toward the $160–$170 range. Until then, investors should keep a close eye on volatility and volume patterns, which will likely provide the clearest early signals of SOL’s next move.