Solana climbed about 14% over seven days to trade near $97.50 on Aug. 26, breaking through several resistance levels before stalling below $100. Analysts are split between a continued rally toward $120 and a deeper correction toward $88.
Solana rose from an Aug. 20 opening price of $85.37 to an intraday high above $102.59 on Aug. 25, a move of more than 20% at its peak. Profit-taking then pulled the token back toward $97.50, but the pullback has not reversed the broader breakout.
SOL breaks out but stalls below $100
The rally pushed Solana above the $87.50 and $93.75 Murrey Math levels, zones that had previously acted as resistance. The token briefly crossed the $100 "ultimate resistance" level and tested the $102-$103 area twice, but buyers could not secure a daily close above that range.
However, the daily RSI has climbed to an overbought 79.32, with its moving average at 68.71, confirming that momentum accelerated rapidly during the rally. An overbought reading does not guarantee an immediate decline, but it suggests SOL may need to consolidate before another sustained move above $100.
Macro shift and short squeeze drive the rally
The advance came alongside a broader crypto rally after liquidity actions by the U.S. Treasury pushed government bond yields lower and weakened the dollar. Lower yields eased pressure on risk assets and forced traders positioned for a decline to close bearish bets, and more than $4 billion in crypto short positions were reportedly liquidated over several days.
Solana benefited from that market-wide short squeeze because of its higher volatility relative to Bitcoin. Improving U.S. regulatory expectations also supported sentiment, as investors responded to the SEC's proposed crypto framework and renewed congressional attention on the Digital Asset Market Clarity Act.
Institutional demand strengthened too. Spot Solana ETFs recorded approximately $65.74 million in net inflows this week, their highest weekly inflows in 2026.
Liquidation clusters and a split outlook
CoinGlass' 24-hour heatmap shows the strongest nearby liquidity concentration around $98.90-$99.10, with additional clusters near $99.50 and $100. A break above $99 could accelerate another push toward $100-$103, while a rejection would leave $96 and $94 exposed.
Pseudonymous trader Altcoin Sherpa expects the advance to continue if broader crypto conditions stay supportive: According to Altcoin Sherpa: "This goes to $120+ in the coming weeks as long as BTC is still stable/strong." A move to $120 from $97.50 would mark about a 23% increase.
Crypto analyst Haris took a more cautious view, calling the structure a possible bull trap and identifying $92 as the first downside target, with a deeper decline toward $80-$88 possible if that level fails to hold.
Solana's near-term direction hinges on whether buyers can turn $100-$103 into support.
Source: crypto.news
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