Solana Bulls Eye $125 as Short Positions Get Squeezed

Solana's price has surged to its January levels, reaching $110 before retracing to a daily low of $105.

The altcoin's uptrend strengthened as short positions were squeezed, with over $30.35 million worth of short positions liquidated according to Coinglass.

Despite the volatility and subsequent liquidations, traders have continued to deploy massive capital in opening new positions, with Solana's Open Interest rising by 10.4% to $7.54 billion and derivatives volume surging by 69% to $17.27 billion.

The indicators suggest that the prevailing trend is likely to continue, with the DMI Modified holding positive for three consecutive days and the Relative Strength Index (RSI) hovering around the overbought zone at 78.