Solana surges 25%, hits $90 as $4.6 billion shorts liquidated after SEC proposal

Massive liquidations upend market

Trading activity in SOL intensified significantly as volume climbed nearly 50%, reaching $9.5 billion. This volume accounts for 17% of the total circulating market value of SOL, reflecting aggressive buying pressure and rising investor interest.

These developments triggered a wave of forced closures for traders betting on a price decrease. Over a three-day span, short positions worth $4.6 billion were liquidated across the crypto market. Notably, August 18 alone registered $2.9 billion in short liquidations, ranking as the eighth-largest single-day liquidation event in the sector’s history.

August 18 saw short positions worth $2.9 billion wiped out, one of the highest daily liquidations ever in the crypto market.

SOL not only broke past its 200-day exponential moving average (EMA), but also overcame long-standing price supply zones at $78 and $90, both previously acting as stubborn resistance. The asset closed at $93.72 on August 21, marking a daily gain of 6.94%.

The Kobeissi Letter, a widely followed financial analysis platform, noted that SOL moved above $100 for the first time since February 3, emphasizing renewed strength and rising momentum across digital assets.

On-chain signals and institutional inflows

A key on-chain indicator has reappeared, one with a track record of preceding rallies. The crossing of 30-day and 50-day moving averages for daily active users was last observed in June 2025, an event previously linked with SOL’s price soaring from $145 to $245 in a matter of months.

This same crossover is evident again according to blockchain analytics firm Santiment, who tracks address activity and user engagement on major blockchain networks.

Mini dictionary: Santiment, an analytics provider specializing in real-time blockchain and on-chain behavior analysis, offers data on metrics such as daily active addresses and sentiment shifts that help assess market dynamics.

Net inflows into SOL-linked exchange-traded fund (ETF) products rose to $38 million, the highest level since May, indicating a return of institutional capital to the network. During this period, the widely watched Crypto Fear and Greed Index climbed from 36 to 76, showing a sharp switch from neutral to highly optimistic investor sentiment.

Technical levels and short-term risks

Technical indicators show Solana is now in overbought territory. The daily candle features a considerable upper wick, suggesting increased selling near current levels as some traders take profits.

Analysts are now watching $83 as a potential support zone if a price pullback occurs, with the 200-day EMA also nearby and likely to serve as an additional floor. Before this recent breakout, SOL had previously failed to hold above $90 on two separate occasions. The closing price above that level signals potential for a sustained move higher if buying persists.

Technical analysts are monitoring the $83 support level, with the 200-day EMA closely aligned as further downside protection.

Should Solana manage to stay above $90, technical targets are projected in the mid-$120 range. Failure to hold this price could see the asset return to a pattern of declining highs. As of now, SOL trades at $91.89, down 9.15% on the day, indicating that the anticipated retracement may have begun.