Solana Crypto Breaks $90 After Liquidation of $24M Shorts

Solana (SOL) is among the top cryptocurrencies showing strength in the recent market rebound alongside Bitcoin (BTC), Ethereum (ETH), and others. The entire crypto market has surged back above the $2 trillion mark, with buying increasing over the past two weeks.

From the look of things, sellers are having a rough moment with liquidations spiking. Whales are betting on the token from a long-term perspective, with Solana’s social dominance displaying the same traits.

With that said, what were the specific details that were pushing the price of Solana over the past two days at press time?

Solana Price Driven By Massive Liquidation of Short Positions

The price action of Solana crypto rose above $90 twice during the day, but it failed to hold that level as of press time. The altcoin’s price was above all three moving averages (MAs): the 10MA, 20MA, and 50MA. This price action suggested that the altcoin was bullish at the moment.

But what was fueling this bullish outlook? According to Solana crypto liquidation data, a $24 million short squeeze in SOL over the past 24 hours pushed the price above $90.

The rally that triggered these liquidations started at $84, with the candle’s massive size indicating the bulls’ urge to wipe out orders from sellers. Gauging all exchanges, there were a lot more short-leveraged liquidations.

However, the move could have ended after the altcoin reached its day’s peak. This suggested price had picked up the liquidity it needed around $90. For continuation, shorter orders above this zone must be closer to the current price level of $87 than orders below it.

Increasing Net Buying of Solana Crypto As OI Stabilizes

On the hourly chart, Solana crypto traders were continuing to buy the altcoin. As the altcoin potentially retested its previously broken high around $87, net buying of long positions further increased. This was evident from the Net Positions reading, which was above 2 million, indicating that buying exceeded selling.

Even though the Net Positions indicator was declining, the net selling of Solana crypto Futures was very minimal. This indicated that the price action was temporarily pausing after the two-day rally.

Additionally, whales were betting on SOL with staking rewards in mind. For instance, an unknown wallet bought 1.25 million SOL, valued at $111 million, and staked them all. This added to the buying in the derivative markets.

Moreover, the Open Interest (OI) stabilized around $10 million even as price action was correcting. This was a clear indication that bulls were still interested in purchasing the altcoin or that short orders were building.

A continuation of the buying activity, as interest grows, could push the SOL price toward $100 or higher.

Social Dominance of Cryptos Made in USA

This is because Solana crypto also leads in positive social dominance among cryptos ‘Made In USA,’ as per data from LunarCrush. Solana crypto led with 11.7%, followed by Ripple (XRP) at 3.15%, with Dogecoin (DOGE), Litecoin (LTC), and Official Trump (TRUMP), among others, following.

Other coins that had significant social dominance but on the negative side were USDC, Chainlink (LINK), and Zcash (ZEC). The inclusion of USDC suggested that traders were shifting toward risk-on assets such as Solana.

Altogether, these observations suggested Solana crypto may be on the verge of a bigger breakout than one seen in the last two days. However, this buying activity needed to continue for that to unfold.