Key Highlights
- Solana climbed approximately 25% over a seven-day period, reaching the $90 threshold following the SEC’s announcement of a proposed cryptocurrency regulatory framework
- Liquidations exceeded $4.6 billion in short positions across three days, with August 18 recording the 8th largest single-day liquidation event in cryptocurrency market history
- Market sentiment indicator, the Crypto Fear and Greed Index, surged from 36 to 76, transitioning from neutral territory to greedy
- A significant on-chain indicator ā the convergence of 30-day and 50-day moving averages for daily active addresses ā previously preceded a 70% price surge from $145 to $245
- Exchange-traded fund net inflows reached $38 million, marking the strongest performance since May, while technical analysts monitor $83 as a possible retracement level
Solana (SOL) has experienced a substantial rally of nearly 25% throughout the previous week, breaking above the $90 price threshold for the first time in several months. This upward momentum emerged after the U.S. Securities and Exchange Commission unveiled a proposed regulatory framework designed for digital assets.
Market activity intensified dramatically, with trading volume jumping approximately 50% to reach $9.5 billion, accounting for 17% of SOL’s circulating supply market capitalization. The breach of critical resistance thresholds initiated a widespread liquidation cascade affecting short sellers throughout the market.
Liquidations totaling over $4.6 billion in short positions occurred within a concentrated three-day window. August 18 independently recorded $2.9 billion in liquidations ā marking the 8th most significant single-day liquidation event in the history of cryptocurrency markets.
The token successfully pushed through both the 200-day exponential moving average (EMA) and two previously established resistance zones located at $78 and $90. These price levels had consistently acted as barriers for extended periods.
On August 21, Solana settled at $93.72, registering a daily gain of 6.94%. Financial market commentary account The Kobeissi Letter noted that SOL had climbed above $100 for the first time since February 3rd, characterizing the movement as accelerating momentum within the broader cryptocurrency rally.
Critical On-Chain Indicator Reactivates
A notable on-chain metric that historically preceded significant price appreciation has resurfaced. The intersection of 30-day and 50-day moving averages tracking daily active users (DAUs) last occurred in June 2025, after which SOL advanced from $145 to $245 over several months.
This identical crossover pattern has now reappeared on Santiment’s analytics chart monitoring Solana’s daily active address activity.
Net inflows into SOL-related exchange-traded funds have climbed to $38 million ā representing the highest positive measurement recorded since May. This development strengthens the argument that institutional capital is flowing back into the asset.
Market psychology has undergone a dramatic transformation. The Crypto Fear and Greed Index transitioned from approximately 36 (neutral territory) to 76 (greedy zone) over the span of one week.
Technical Outlook and Analyst Perspectives
The Relative Strength Index has advanced into overbought conditions following the swift price appreciation. A pronounced upper wick formation on the current trading candle indicates mounting selling pressure near present valuation levels.
Market analysts are closely observing the $83 price point as a probable retracement destination should profit-taking activity intensify. The 200-day EMA is positioned in proximity and may provide support during any downward correction.
Before this week’s advancement, SOL had challenged the $90 level on at least two occasions without maintaining that elevation. Thursday’s closing price above this threshold represents the first decisive settlement beyond $90 throughout this timeframe.
Should Solana maintain support above $90 in upcoming trading sessions, the subsequent technical target sits in the mid-$120s range. A failure to hold would preserve the existing pattern of declining highs.
Current market data indicates SOL trading at $91.89, declining 9.15% intraday, suggesting initial manifestations of the anticipated pullback have already commenced.
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