Solana Breaks Through Resistance as Short Squeeze Punishes Bears
Solana's SOL token has broken through its most important resistance level in months, and traders who bet against it have suffered losses. According to ChatGPT AI, this breakout is likely to continue due to ETF inflows and a short squeeze.
Volatility reached 9.52% today, with daily volume at $988 million, and SOL trading near $117.60, up 5.8% on the day. This price action marks a significant recovery for Solana, which has more than doubled since bottoming around $60 in July.
ETF inflows played a key role in this move, with US spot Solana ETFs absorbing 468,600 SOL worth around $55 million on September 18 alone. Bitwise's BSOL drove almost all of these inflows, making it the largest contributor to demand.
The short squeeze was brutal, with $23.72 million of SOL positions wiped out across 3,968 traders in just one day. Over 90% of this pain landed on traders betting Solana would fall, highlighting the intensity of the squeeze.