Solana (SOL) Price: Everyone Is Shorting SOL – Is a Short Squeeze Brewing?

TLDR

• SOL is trading around $83.69, up 1.5% in 24 hours, with a daily range of $79.82–$83.64
• Price remains below the 50-day EMA (~$106.66) and 100-day EMA (~$124.18), keeping the broader trend bearish
• Funding rates have turned negative, suggesting heavy short positioning that could trigger a short squeeze toward $100
• Network growth and new wallet creation continue rising despite falling prices
• Analyst curb.sol sees a $75–$90 consolidation range, with a breakout above $90 potentially targeting $120

Solana is trading around $83.69, recovering from an earlier dip to $79.82 during the session. The coin is up 1.5% over 24 hours with roughly $3.25 billion in trading volume and a market cap near $47.57 billion.

Despite the short-term bounce, SOL remains in a downtrend on the bigger picture. Price is trading well below the 50-day moving average at $106.66 and the 100-day moving average at $124.18. Both averages are sloping downward, which points to continued bearish pressure.

The immediate resistance zone sits between $90 and $100. Any rally into that area is likely to face sellers, and a break above the 50-day average would be needed to signal a real shift in trend direction.

On the downside, a drop below $78 could push SOL toward $75, a key psychological support level. For now, price appears to be in a base-building phase, but no confirmation has happened yet.

Short Squeeze Setup

The derivatives market is showing a sharp drop in funding rates into negative territory. This means most traders are currently betting against SOL. When short positioning gets this extreme, a sudden price move upward can force those traders to close their positions, creating a chain reaction of buying known as a short squeeze.

Past instances where funding turned this negative have lined up with local price bottoms for SOL. A breakout above $90 with strong volume would increase the chance of that squeeze playing out toward $100.

Open interest and volume would need to confirm any move before it becomes reliable.

Network Activity Diverges From Price

On-chain data shows that new wallet creation on Solana has been rising steadily, even as the price has fallen. This kind of split between adoption and price has historically appeared during accumulation phases in past cycles.

Social dominance for Solana has dropped since its September peak, meaning fewer people are talking about it relative to other crypto assets. While this sounds negative, reduced hype often marks the exit of short-term traders and can precede quieter accumulation.

The True Strength Index remains below zero, with the main line at -33 and signal line at -35, showing bearish momentum still in control. However, the lines are beginning to flatten, which may suggest selling pressure is cooling.

Analyst curb.sol is watching the $75–$90 range as a consolidation zone, with $120 as a potential target if SOL breaks above $90.

SOL most recently traded at $83.69 with the upper end of its daily range at $83.64.

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