Solana’s price is stuck in a crucial price range, below $90, after experiencing weeks of steady decline. In times when the broader market structure reflects bearish dominance, with constant lower highs and lows, SOL derivatives have slowly begun to rise. On the other hand, the on-chain data suggests a rise in participation, and this combination usually precedes sharp relief rallies.
The current market structure appears to be positioned defensively. Here are the top reasons pointing towards a probable short squeeze incoming, leading the SOL price to $100.
Solana Network Growth Rises Despite Price Weakness
Solana’s network growth has steadily increased over the past several months, even as the SOL price trends lower. The Santiment chart shows a clear rise in new wallet creation, indicating continued user onboarding despite market weakness. This divergence between price and adoption can be significant.
In many market cycles, growing network activity during price declines suggests quiet accumulation rather than structural collapse. However, wallet growth alone does not guarantee bullish momentum. Traders should watch whether this increase translates into higher transaction volume and stronger on-chain engagement. If adoption continues rising while price stabilizes, SOL could be building a foundation for recovery.
Negative Funding Rates Point to Short Squeeze Risk
Solana’s average funding rate has turned sharply negative, signaling that short positions dominate the derivatives market. When funding remains deeply negative, it means traders are aggressively betting on further downside. Historically, such extreme short positioning has often preceded short squeezes.
If the price begins to rise unexpectedly, overleveraged shorts may be forced to close positions, triggering liquidations that push SOL higher. Previous funding spikes on the chart align with local bottoms. However, funding alone is not a reversal signal. Confirmation would require rising open interest combined with a breakout above near-term resistance levels.
Declining Social Dominance Reflects Cooling Hype
Solana’s social dominance has declined significantly since its September peak. This metric tracks how much crypto-related discussion centres around SOL compared to other assets. Lower social dominance typically signals fading retail interest and reduced speculative attention.
While this may appear bearish, markets often bottom when hype disappears. Reduced social chatter can indicate that weak hands have exited, leaving stronger participants in control. If SOL stabilizes while social metrics remain subdued, it may reflect an early accumulation phase. A sustained price breakout accompanied by rising social dominance would strengthen the case for a broader bullish reversal.
Can SOL Price Reclaim $100?
At present, Solana price remains technically in a downtrend, trading below key resistance levels. The $90 zone acts as immediate resistance, while $100 represents both psychological and structural resistance. A decisive breakout above $90, with strong volume, could open the path toward a short-squeeze rally targeting the $100 region.
Until that breakout occurs, the setup remains conditional. Extreme bearish positioning increases squeeze probability, but price structure still requires confirmation. In short, SOL price is at a crucial turning point. Whether it becomes a short squeeze rally or a continuation of the downtrend depends on how it reacts in the coming sessions.
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