Journalist
Posted:
Key Takeaways
Solana breaks out of a symmetrical triangle, holding $200 support and targeting $260–$300. Shorts face $6.3M in liquidations, reinforcing bullish strength despite overheating risks.
Since early September, Solana [SOL] has powered through the $200 level. Now, the altcoin’s daily chart reveals a breakout of a symmetrical triangle, with $200 serving as a critical support base.
The current structure suggests that buyers are firmly in control, eyeing $260 as the next major resistance before potentially extending toward $300.
Momentum remained favorable at press time, as higher lows and strong volume confirmed the validity of the breakout.
Still, traders should watch for potential retests of $200, as failed holds at this level could trigger renewed selling pressure. Yet, for now, the breakout paints a distinctly bullish picture.
Source: TradingView
Overheating risk?
Despite the bullish price action, The Futures Volume Bubble Map indicated a rapid acceleration in activity, suggesting that Solana’s traders may be overleveraging.
While this expansion fueled short-term price action, it also elevated risks of liquidation cascades. If positions grow too concentrated, even modest corrections could spark sharp volatility.
Liquidation trends reinforce bullish conviction
Liquidation data revealed that shorts were being punished at a much higher rate than longs at the time of writing, fueling upward price pressure.
On the 10th of September, over $6.3M in short positions were wiped out, compared to only $329K in longs.
This imbalance illustrated that bearish traders were capitulating, strengthening buyer confidence and accelerating price gains.
Historically, such skewed liquidation activity often marks the early stages of trend continuation.
Unless fresh short positions rebuild in size, Solana’s path of least resistance appears tilted upward toward higher resistance zones.
To sum up, Solana’s breakout from a symmetrical triangle, combined with heavy short liquidations, points to an extended bullish phase.
While derivatives data warns of overheating, the liquidation imbalance suggests buyers still control the market, making $260 and beyond increasingly realistic.
