Solana’s bullish structure has strengthened on the price charts, despite some pullback across the wider market. Thanks to the same, SOL may now be on the verge of clearing all of 2026’s losses.
Just recently, Solana jumped to its January levels, with the altcoin hitting $110 driven by Charles Schwab’s plans to incorporate SOL. However, this pump proved short-lived as the altcoin retraced to a daily low of $105.
At the time of writing, Solana was up 5% on the daily charts, with the same adding to its weekly gains of 18%. This market volatility sparked a wave of liquidations for both short and longs.
According to Coinglass, over $30.35 million worth of short positions were liquidated as the prices jumped. At the same time, $8.9 million worth of longs were liquidated.
Solana still seeing high demand for leveraged positions
Despite rising volatility and subsequent liquidations, traders have continued to deploy massive capital in opening new positions.
According to Coinglass, Solana’s Open Interest rose by 10.4% to $7.54 billion while the derivatives volume surged by 69% to $17.27 billion.
When OI and Volume rise in tandem, it usually alludes to greater participation and steady capital inflows. In fact, both sellers and buyers have remained extremely active on the Futures side.
A look at the shorter timeframes revealed that sellers have been aggressively closing their positions. Over the last 12 hours, however, Solana saw $1.45 billion in outflows compared to $1.36 in Inflows.
On the other hand, over the last 24 hours, the altcoin saw $4.37 billion in inflows with Netflows rising to $3.9 million.
These implied that recent liquidations risk sparking fear, with most traders choosing to close their positions.
Are investors still skeptical?
After Solana [SOL] rebounded on the charts, holders increased spending significantly and turned to profit realization. In fact, the Netflow held positive for seven consecutive days, hitting a yearly high of $63 million on 27th August.
However, on 28th August, this trend changed and Netflows turned negative. At press time, the Netflows were around -$3.8 million.
This shift suggested that sellers may be getting exhausted and buyers might be stepping in. Often, such a step on exchanges has preceded major prices moves to the upside.
What should traders expect next?
Despite the aforementioned pullback, Solana’s market structure was still strongly bullish at press time. The DMI Modified indicator, for instance, held positive for three consecutive days.
The DMI Modified sat around 34, hinting at strong upside momentum. Likewise, the Relative Strength Index (RSI) has continued to hover around the overbought zone at 78, further confirming this trend’s strength.
Together, these two indicators suggested that the prevailing trend is likely to continue. Therefore, if the demand holds still, Solana will reclaim $110, flip it, and target $125 next.
However, if the rising sell pressure on the derivatives persist, SOL will retrace to $102.
Final Summary
- Solana [SOL] jumped to its January levels and hit $110, before retracing to a daily low of $105.
- Solana’s uptrend strengthened as short positions got squeezed.
