Solana (SOL) draws attention at the point where there has been a significant price squeeze recently. The cryptocurrency is trading near a long-term support line on the daily chart, with a large accumulation of short positions particularly prominent towards the $87 level. The outlook in question points to a decision zone where investors observe short-term leverage pressures together with long-term price movements.
Short Position Liquidation and $87 Resistance
According to market analysis, SOL price is currently fluctuating between $83 and $84. On the liquidation map, it can be seen that short positions opened with high leverage, especially around $87, are concentrated, and this region almost acts as a liquidation wall. It is stated that a move towards this level could cause a short squeeze due to forced closes on short positions.
In such a situation, automatic closing of short positions may lead to additional buy orders and trigger a rapid movement of the price to higher levels. However, so far Solana has not yet been able to approach this region; The price is below the 84-85 dollar band.
Heavily leveraged short positions may face liquidity risk if the SOL price rises to $87. The fact that this region has warmed up indicates that the market may react sharply upwards.
On the other hand, according to the liquidity map, there is significant buying liquidity just below the price, especially at the $81 level. Therefore, there is a possibility that a downward movement will test this region in the first place.
Long Term Support and Triangle Formation
From another perspective, Solana is watching close to the lower support line of a large triangle formation that has been continuing since 2023 on the daily chart. On the 1-day SOL/USDT chart, analysts state that the price has experienced a large-scale correction since the last cycle peak and that this process is covered by the support line.
The upper line of the triangle stands out as the main resistance. This resistance is in the form of a sloping line extending to the 2025 peak; It indicates a tight area where support and resistance zones are approaching. The chart shows that $230 will be an important target if SOL breaks the resistance line, and in case of a stronger rise, $460 may also be technically possible.
In the current situation, Solana’s most critical need is to maintain the lower support line and then confirm the rise by breaking the falling resistance line upwards. It is stated that the price’s compression in the triangle has continued for approximately 86 days, and the total transaction volume reached 267.24 million during this period. Analysts state that this long-term horizontal movement indicates that the SOL has formed a base before a decisive breakout.
