Altcoins News

Story: Solana Eyes Breakout as Shorts Build Above $170

By Evie Vavasseur

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Solana (SOL) is showing renewed strength as it approaches a key resistance level, with bullish momentum building and market conditions setting the stage for a potential short…

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At the time of writing, Solana was trading around $171.47, reflecting a 2.14% gain over the previous 24 hours.

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Shorts Under Pressure Near Key Resistance

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Market data shows that a significant number of short positions have been established in the $170 to $176 range.

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According to liquidation heatmaps, the area between $170 and $176 is loaded with overleveraged short trades.

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On May 18, over $1.72 million in short positions were liquidated, while long liquidations remained minimal. This imbalance is a classic sign of vulnerability among bearish traders.

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Funding Rates Turn Positive, Signaling Sentiment Shift

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Adding fuel to the bullish case is a shift in derivatives market sentiment. For the first time in weeks, Solana’s funding rate on Binance flipped into positive territory,…

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Positive funding rates mean that long positions are paying to hold, indicating growing confidence that prices will rise.

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Retail Interest Returns as Social Buzz Grows

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Momentum is not limited to trading data alone. Solana is also regaining attention in the broader crypto community.

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This rise suggests that retail traders and community members are starting to pay closer attention once again.

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Historically, social media traction tends to spike when a coin begins making strong upward moves, acting as both a consequence and driver of momentum.

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Technical Indicators Suggest Bullish Continuation

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From a technical analysis standpoint, Solana appears well-positioned. The price has held above the 1.618 Fibonacci extension level at $163.

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