Solana (SOL) Shatters $85 Resistance, Eyes $110 Following Symmetrical Triangle Breakout
Solana (SOL) is trading at about $88, up about 8% in the last day as weeks of losses were wiped by a general resurgence in the crypto market
Quick overview
- Solana (SOL) is currently trading at approximately $88, experiencing an 8% increase as the cryptocurrency market rebounds from previous losses.
- The recent price surge is linked to speculation that systematic selling pressure from trading firm Jane Street may have ceased following a lawsuit related to Terraform Labs.
- Technical analysis indicates that SOL has broken a symmetrical triangle formation, with a potential target of $110 if it maintains momentum above key moving averages.
- Increased demand from short liquidations, ETF inflows, and whale buying, along with a rise in Solana's decentralized exchange activity, are contributing to the positive market sentiment.
As of this writing, Solana SOL/USD is trading at about $88, up about 8% in the last day as weeks of losses were wiped by a general resurgence in the cryptocurrency market. One of the biggest one-day rallies in the history of digital assets has occurred in tandem with the spike, which coincides with speculation that systematic selling pressure, purportedly associated with trading firm Jane Street, may have subsided after a high-profile lawsuit.
Jane Street Lawsuit Triggers Pause in Daily Dump, Market Erupts Higher
The reason for the day stems from a lawsuit brought by the administrator in charge of Terraform Labs’ liquidation, which claims that Jane Street front-run trades linked to the disastrous 2022 collapse of the Terra-Luna ecosystem using confidential knowledge gleaned from Terraform insiders. Social media cryptocurrency traders quickly realized that there has been a pattern of significant selling at 10 a.m. for months. Both Bitcoin BTC/USD and altcoins had been affected by Eastern time. That pattern allegedly disappeared as soon as Jane Street was mentioned in the lawsuit.
“The bogeyman is gone,” commented Eric Balchunas, a senior ETF analyst at Bloomberg, summarizing the sentiment on cryptocurrency social media. The timing was sufficient to spark a market-wide surge, even though there is currently no concrete proof that Jane Street was involved in a systematic daily sell-off. Ethereum jumped more than 13%, Bitcoin momentarily surpassed $70,000, while Solana, which benefited from its historically high beta to Bitcoin, rose more than 15% at its intraday peak.
SOL/USD Breaks Symmetrical Triangle: Technical Target Points to $110
From a technological perspective, the move is really important. A symmetrical triangle formation that has been compressing price activity for a few days was broken by SOL on the six-hour chart. By adding the triangle’s height to the breakout point, the measured goal of this breakout is $110. That level is a double-edged resistance zone to keep an eye on because it aligns with the 50-day simple moving average (SMA).
SOL must close above the 100-day SMA at $86 in order for the positive momentum to continue. Analysts say that if the price closes above the 20-day exponential moving average (EMA) at $88—about where it is now—the next reasonable goals would be $95 and then $117. In the event of a decline, $83.05 (the 61.8% Fib level) would provide a deeper floor, while the 50% Fibonacci retracement at $84.57 would serve as important near-term support.
The optimistic argument is strengthened by Glassnode’s onchain data, which indicates that few holders carry a cost basis in the $85 range due to the realized price distribution for SOL showing little past buying activity above that level. Until the price hits the $115 region, where over 22 million SOL were previously accumulated, this lessens the possibility of significant overhead selling pressure.
Short Liquidations, ETF Inflows, and Whale Buying Fuel Demand-Side Pressure
There was more to today’s rise than just speculation. As forced buyers entered the market, $15.4 million in short positions in derivatives were liquidated during the course of the day, accelerating the upward price momentum. At $5.27 billion, open interest in SOL futures increased by more than 5%, indicating that new money is joining the market instead of just short-covering.
Since February 9, US-based spot Solana ETFs have subtly amassed net inflows of $40 million, offering a consistent institutional bid below the market. Whale accumulation behavior is further supported by Lookonchain’s on-chain data, which adds another structural demand pillar that can support a move toward the $110–$115 resistance zone.
Solana Ecosystem Tailwinds: Memecoins and Network Activity Amplify the Move
A thriving environmental response boosted SOL’s gains. A spike in speculative activity across Solana decentralized exchanges (DEXs) was reflected in the rise of leading Solana-native memecoins BONK and WIF, which reported gains of 12% and 11.8%, respectively. A technical breakout was cited by traders as a major driver of directional conviction, while social mood surrounding Solana received a slightly positive 4.86.
Solana Price Prediction: $95 Near-Term, $110–$115 If Bitcoin Holds $68,000
SOL has a cautiously constructive short-term view. The current 20-day EMA is $88. A sustained daily close above this level would probably allow for a quick test of $95, which would then be followed by a run toward the symmetrical triangle goal of $110 and the important supply zone at $115. This scenario, nevertheless, depends on Bitcoin continuing to hold over $68,000. As of right now, Solana’s RSI is elevated around 72, indicating short-term overbought conditions and increasing the likelihood of a consolidation or slight pullback before to any further upward movement.
The first indication of trend weariness would be a failure to close above the $84.57 support, with $83.05 serving as the next significant floor. Because Solana’s directional bias is still primarily driven by the larger crypto ecosystem, traders should closely monitor Bitcoin’s price behavior, especially whether it can defend the $68,000 level.
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