Solana Price Prediction: SOL Enters Bull Market Territory as Market Sentiment Shifts
By Alejandro Arrieche | Published: Aug 23, 2026
Key Highlights
- Solana (SOL) has broken through three significant resistance levels, leading to a substantial short squeeze.
- The Crypto Fear and Greed Index has surged to 76, indicating a bullish market sentiment.
- An on-chain signal has emerged, reminiscent of a previous surge that saw SOL rise from $145 to $245.
Market Performance
In the past week, Solana's price has increased by nearly 25%, reaching the target of $90 per token following a new regulatory framework proposed by the U.S. Securities and Exchange Commission (SEC) for crypto assets. Trading volumes for SOL have surged by approximately 50%, totaling $9.5 billion, which represents 17% of its circulating market cap. This increase in trading activity has triggered a massive short squeeze, with over $4.6 billion in short positions liquidated in just three days.
Liquidation Events
On August 18, a record $2.9 billion was liquidated in a single day, marking it as the eighth-largest wipeout in crypto history. Such significant liquidation events have historically indicated the onset of new price cycles.
Technical Indicators
Net inflows into ETFs associated with Solana have reached $38 million, the highest since May. A crossover between the 30-day and 50-day moving averages for daily active users (DAUs) has been observed, suggesting a potential upward movement for SOL. This crossover previously resulted in a significant price increase from $145 to $245 in mid-2025.
Future Price Predictions
Despite the recent rally, a pullback to the $83 level is anticipated as the Relative Strength Index (RSI) indicates overbought conditions. This potential decline could provide an opportunity for late buyers to enter the market at a more favorable price. The recent price action has already hit the $90 target, which aligns with the 200-day exponential moving average (EMA) and a former supply zone.
Conclusion
The current market dynamics suggest that Solana is entering a bullish phase, driven by strong market sentiment and technical indicators. However, traders should remain cautious of potential pullbacks as profit-taking occurs after significant price movements.