Solana (SOL) price continues to trade within a steady recovery channel after rebounding sharply from its June lows. While the token has struggled to reclaim the $79 resistance level, improving momentum indicators and a large cluster of liquidations above the current price suggest the next move could be decisive.
With the MACD approaching a bullish crossover and CoinGlass data highlighting a potential short squeeze, can SOL build enough momentum to target $83 and eventually $88?
SOL Price Analysis: Momentum Builds as Bulls Eye a Breakout
SOL remains within an ascending parallel channel, preserving its medium-term bullish structure despite recent consolidation around $78. The channel continues to produce higher lows, indicating buyers are gradually absorbing selling pressure. The MACD histogram has started shrinking, signaling that bearish momentum is fading, while the levels are heading for a bullish crossover.
Supporting this outlook, the Chaikin Money Flow (CMF) has recovered to around the neutral line after spending several weeks in negative territory. Although the indicator remains slightly below zero, it suggests capital outflows have eased considerably, while fresh buying interest is slowly returning to the market. Together, these indicators point to an improving technical backdrop, although confirmation still depends on SOL reclaiming overhead resistance.
CoinGlass Liquidation Heatmap Signals a Potential Short Squeeze
The latest CoinGlass liquidation heatmap highlights a significant concentration of leveraged positions around the $79 level, making it one of the most important price zones to watch.
Large liquidation clusters often act as liquidity magnets, attracting price toward areas where leveraged traders are most vulnerable. Since the current SOL price is trading just below this region, a breakout above $79 could force short sellers to close their positions, creating a wave of liquidations that fuels additional buying pressure.
On the downside, another notable liquidity pocket sits around $77-$77.50. If SOL fails to hold current levels, the price could briefly revisit this zone to clear downside liquidity before attempting another recovery. This places SOL between two major liquidity pools, increasing the probability of a sharp move once either side gains control.
Key Levels to Watch
- Current Price: $78.00
- Immediate Resistance: $79.00
- Major Resistance: $83.50
- Next Upside Target: $88.00-$89.00
- Key Support: $77.00-$77.50
- Channel Support: $73.00-$74.00
- Major Resistance Beyond: $92.30 and $96.90
Can SOL Price Reach $88 Next?
Solana’s broader trend remains constructive as the token continues to trade within an ascending channel while momentum indicators gradually improve. The $79 resistance remains the key hurdle. A decisive breakout above this level could trigger a wave of short liquidations, accelerating the rally toward $83.50, with $88-$89 emerging as the next major resistance zone. Conversely, failure to reclaim $79 may see SOL revisit the $77-$77.5 liquidity pocket before buyers attempt another breakout.
As technical momentum and derivative positioning begin to align, the coming sessions could determine whether Solana’s price extends its recovery or remains trapped in short-term consolidation.
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