Solana (SOL) Revisits $150–$160 Demand Zone Amid Potential 16% Rebound and Short Squeeze Possibility

Key Points

1. Solana retraced from its July high above $206 to the $150–$160 demand zone, a historically significant support level that has previously triggered strong rebounds.

2. Institutional interest in Solana has surged, with CME SOL futures open interest increasing by 370% to $800 million, following the approval of the first Solana staking ETF in the U.S.

3. There are $73 million in short positions above $170.4, which could trigger a short squeeze if SOL surpasses $166.8.

4. Technical indicators show SOL bouncing off $160.50, with a 16.78% short-term recovery, and the RSI cooling to 42.43, moving away from overbought conditions.

5. The $150–$160 demand zone aligns with the 0.618 Fibonacci retracement level, reinforcing its technical importance for a potential rebound.