Solana Soars: 25% Rally Triggers Short Squeeze and Shifts Market Sentiment
Solana (SOL) has made significant gains in recent days, rising by nearly 25% over the past week. The altcoin's price has surpassed $90 per token, hitting a target previously mentioned as a key level of resistance. Trading volumes have surged to $9.5 billion, accounting for 17% of Solana's circulating market cap.
The sharp increase in trading volume and price has triggered a massive short squeeze, with over $4.6 billion worth of short positions liquidated in the past three days alone. This is one of the largest single-day wipeouts in crypto history, often marking the beginning of new price cycles. In fact, the last time this on-chain signal flashed, Solana's price rose by 70%.
Market sentiment has also shifted dramatically, with the Crypto Fear and Greed Index moving from neutral to greedy territory. This suggests that investors are becoming increasingly optimistic about Solana's prospects. Furthermore, net inflows to ETFs linked to Solana have surged to $38 million, the highest positive print since May.