Solana (SOL) has surged nearly 25% over the past week, breaking the $90 barrier for the first time in months. This impressive rally coincides with the U.S. Securities and Exchange Commission’s (SEC) recent proposal of a new regulatory framework for cryptocurrency assets, which has instilled renewed optimism among investors.
The trading volume for SOL skyrocketed by nearly 50%, now standing at $9.5 billion, which represents 17% of the cryptocurrency’s circulating market cap. This surge has triggered a significant cascade of short liquidations across the market, with over $4.6 billion in short positions liquidated within just three days. Notably, August 18 marked the eighth largest single-day liquidation in crypto history, with $2.9 billion wiped out in a single day.
On August 21, Solana closed at $93.72, reflecting a 6.94% increase on the day. Financial news accounts highlighted the milestone of SOL surpassing $100 for the first time since February 3, indicating a growing momentum in the crypto rally.
On-Chain Signal Indicates Potential for Rally
Adding to the bullish sentiment, an on-chain signal that previously predicted a significant price rally has re-emerged. A crossover between the 30-day and 50-day moving averages for daily active users (DAUs) has been observed, a pattern last seen in June 2025, when SOL jumped from $145 to $245 within months.
Moreover, net inflows into Solana-related exchange-traded funds (ETFs) have reached $38 million, the highest level since May, suggesting that institutional interest in SOL is on the rise. The overall market sentiment has also shifted considerably; the Crypto Fear and Greed Index has moved from a neutral score of 36 to a greedy score of 76 within the week, reflecting increased investor confidence.
Analysts Keeping a Close Eye
Despite the recent surge, analysts have noted that the Relative Strength Index (RSI) has entered overbought territory, signaling potential selling pressure around current price levels. They are particularly interested in the $83 mark, which may act as a pullback target if profit-taking accelerates. The 200-day exponential moving average (EMA) is also positioned nearby and could provide support.
Prior to this week’s breakout, SOL had tested the $90 level multiple times without sustaining it. The close above this level on Thursday represents the first convincing break above $90 in a significant period.
If SOL manages to hold above this level in the upcoming sessions, the next technical target could be in the mid-$120s. Conversely, a failure to maintain this level would perpetuate a pattern of lower highs. As of the latest data, SOL is trading at $91.89, down 9.15% on the day, indicating early signs of the expected pullback.
