Solana (SOL) declined to its crucial $150-$160 demand zone after retreating from July peaks above $206. This price range historically serves as a robust support level and has consistently prompted significant rebounds.
Growing institutional interest bolsters SOL’s outlook, highlighted by CME’s Solana futures open interest surging 370% to $800 million. This follows the landmark approval of the first Solana staking ETF in the U.S., signaling heightened market confidence.
Market analysis reveals $73 million in leveraged short positions clustered above $170.4. Technical indicators suggest a potential short squeeze could accelerate if SOL reclaims $166.8, potentially amplifying upside momentum.
Current technical positioning shows SOL recovering 16.78% after bouncing near $160.50, with its Relative Strength Index cooling to 42.43 – exiting overbought territory. The $150-$160 demand zone aligns with SOL’s 0.618 Fibonacci retracement level, reinforcing its technical significance.