Solana (SOL) Surge: Can a Short Squeeze Push Price to $300?
Key Takeaways
Solana (SOL) has demonstrated strength against other altcoin sectors due to reduced supply and increasing whale positions. With transaction volumes rising, can Solana maintain its upward trajectory?
Solana (SOL) has seen positive movement on the daily chart, posting moderate gains. Its performance continues to outpace many other altcoins.
The rally is supported by accumulation from large holders and institutions, attracting retail investors as well. While other altcoin sectors have shown weakness, SOL has remained relatively strong.
Solana vs. Other Altcoins
Solana has exhibited leadership compared to other altcoin sectors this month, demonstrating a performance reading of 0.20, slightly surpassing Layer 2 solutions (L2s) and DeFi tokens.
Although DeFi and L2 tokens briefly led in mid-August, Solana regained its leading position by the end of the month. DePin and AI tokens lagged slightly behind.
Solana Price Rebound
On the weekly chart, SOL briefly hit $260 before retracing. This spike hints at a potential rally, breaking past a double top near $220.
Recent price action has tested the $240 zone, recovering from a dip below $230. As of now, SOL is up approximately 13%.
Should SOL move towards $280, significant liquidation clusters could trigger market adjustments. Additionally, $7.23 billion in SOL short positions are at risk of a squeeze, potentially driving the price toward $300.
Shrinking Supply, Big Whale Bets
The supply of Solana is decreasing as whales, institutions, and retail investors accumulate more SOL. Staking contributes to this supply shock, with nearly 30% of SOL staked.
A whale recently initiated a long position on Hyperliquid with 25x leverage at $215, establishing a $4.39 million position, according to CryptOpus.
Notably, monthly transaction counts hit a new all-time high of 46.99 million with one day remaining, despite August seeing reduced gains.
DEX volume reached $135 billion, and TVL hit $240 billion. Active addresses exceeded 15 million.
Overall, Solana has outperformed its peers, with strong on-chain activity reinforcing its market position. Codeum provides smart contract auditing services to ensure the security of projects within the Solana ecosystem.