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Solana (SOL) is trading below a heavy short zone between $90 and $105, creating strong squeeze potential.
Spot ETF approvals in late 2025 opened the door for institutional demand and steady inflows.
Rising on-chain activity and network upgrades add real usage support behind price momentum.
Solana (SOL) is showing signs of a powerful short squeeze. This phenomenon happens when traders who bet on lower prices are forced to buy back quickly as prices rise. That fast buying can push the price even higher in a short time.
SOL has recently traded in the mid-$80 range after moving above $100. That earlier jump created a clear resistance area between $90 and $105. Many short investors opened positions in this zone, expecting the price to fall again. If SOL climbs back into that range with strong momentum, those traders may rush to close positions, adding heavy buying pressure.
A major shift came after spot Solana exchange-traded products received regulatory approval in late 2025. These products allow institutions and traditional investors to gain exposure to SOL in a simple and regulated way.
Since those approvals, demand for SOL has improved. ETF creation and rebalancing periods often bring steady inflows. When large funds buy at the same time, even moderate demand can push prices higher. If those purchases happen while short interest is high, an uptrend could occur.
This new access has improved liquidity and market depth. Institutional money entering through Solana ETFs adds credibility and can support long-term growth.
Network data also supports the bullish case. Daily active addresses on Solana have reached multi-month highs. Transaction counts have increased, and decentralized exchange volumes on the network have grown strongly.
Stablecoin activity, especially USDC issued on Solana, has expanded. High stablecoin supply often means more trading, lending, and decentralized finance activity. That creates real demand for the network.
Recent technical upgrades aim to increase transaction capacity and improve stability. These changes reduce performance risks and attract developers building new projects. Strong usage gives the asset fundamental support rather than relying only on speculation.
Also Read - Solana Price Alert: Panic in Futures, Will $80 Break?
Market heatmaps show a large cluster of leveraged short positions between $90 and $105. When many traders are positioned in the same direction, the market becomes fragile.
If SOL rises toward $90, stop-loss orders may trigger. Once price moves past key levels, margin liquidations can begin. Exchanges automatically close losing short trades, forcing buyers. That buying can push Solana price even higher, causing a chain reaction.
Large liquidation events were already seen during volatile trading sessions. Those events proved how quickly leverage can unwind. A similar situation, but with stronger upside pressure, could create a rapid surge toward $100 or beyond.
A short squeeze usually needs more than one trigger. In Solana’s case, several possible drivers exist at the same time.
ETF inflows could increase during market strength. Network upgrades may improve investor confidence. Growing on-chain activity shows real usage. A broader crypto market rally, especially if major assets gain momentum, can lift SOL along with it.
When different positive factors appear together, sellers face growing pressure. Even modest buying volume can break resistance if order books are thin.
Global liquidity and macroeconomic trends still influence digital assets. Risk-off events, regulatory changes, or sharp market corrections could slow momentum. Some short traders may reduce exposure early, lowering squeeze intensity.
However, the current structure shows a clear imbalance. Price recently pulled back from above $100 and now sits below the heavy short zone. That creates visible fuel above current levels.
Also Read - Will Solana (SOL) Reach $200 in 2026? Price Forecast & Analysis
Solana shows promise through its improving fundamentals, rising network usage, institutional access through spot ETFs, and a clear cluster of leveraged short positions between $90 and $105. The asset recently traded in the mid-$80s after reaching above $100 in February 2026.
If price pushes into that resistance band with strong buying, forced liquidations could follow. That chain reaction has the potential to drive a fast move toward $100 and possibly beyond. While risks remain, the combination of positioning, demand growth, and structural improvements makes a significant short squeeze realistic.
What is a short squeeze in crypto?
A short squeeze happens when traders betting on lower prices are forced to buy back as SOL price rises, pushing it up even faster.
Why is $100 an important level for SOL?
SOL previously moved above $100 in February 2026, and many short positions are clustered just below and above that level.
How do ETFs impact Solana’s price?
Spot ETFs allow institutions to buy exposure easily, which can increase demand and improve liquidity.
Is on-chain activity important for price growth?
Yes. Higher daily active addresses, stronger DEX volumes, and stablecoin growth show real network usage.
What risks could stop a short squeeze?
Market-wide corrections, reduced liquidity, or traders closing short positions early could weaken upward momentum.
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