Solana ($SOL currently trading near $145.50, and while that might seem stable on the surface, the underlying market data tells a different story — one that could lead to a major price breakout.
A closer look at derivatives data, particularly futures contracts, reveals that a large number of traders are heavily shorting Solana — especially within the $146 to $170 range. These traders are betting that the price will fall, and many are using high leverage to amplify their positions. The risk? If the price goes up instead, these traders could face swift and painful losses.
What’s a Short Squeeze?
A short squeeze happens when the price of an asset rises unexpectedly, forcing traders with short positions to buy back into the market to cover their losses. This creates increased buying pressure, which drives the price even higher — triggering more liquidations and, in turn, more upward momentum. It’s a chain reaction that can lead to explosive growth.
According to data from Coinglass, the most vulnerable zone lies between $150 and $163 — particularly on the Bybit exchange — where tens of millions of dollars in short positions are at risk. These aren’t isolated bets; they represent a large group of aggressive traders.
If $SOL climbs just slightly and breaks through the $146–$148 range, it could trigger a wave of forced liquidations. With minimal resistance up to the mid-$160s, there’s potential for a rapid and powerful rally.
However, if Solana fails to break through this level, bearish traders may regain control — but their positions remain fragile. Even a small upward move could cause significant damage to those holding shorts.
Final Thoughts
The Solana market is currently in a highly sensitive state — like a tightly stretched string. A small push could set off a major move upward.
So the question remains: is Solana on the brink of a breakout, or is this setting up to be another bull trap?
