Solana price enters bull territory as market sentiment shifts

Solana (SOL) has entered bull-market territory after rising nearly 25% in seven days and clearing the $90 level, driven by SEC regulatory proposals, surging ETF inflows, and a short squeeze that liquidated over $4.6 billion in bearish bets—putting solana price back in focus as traders debate a sustained push toward $100.

The altcoin's rebound accelerated after the U.S. Securities and Exchange Commission proposed a new regulatory framework for crypto assets, according to reporting from Yahoo Finance. Solana pushed past its 200-day exponential moving average and former supply zones at $78 and $90, triggering a massive short squeeze.

Trading volume jumped nearly 50% to $9.5 billion—about 17% of SOL's circulating market cap. The Crypto Fear and Greed Index also swung from roughly 36 to about 76, signaling a sharp turn from neutral caution to outright greed among investors.

Key Takeaways

• SOL rose roughly 25% in a week and hit the $90 target analysts had flagged as a key resistance confluence.
• Over $4.6 billion in short positions were liquidated in three days; August 18 alone saw $2.9 billion wiped out—the eighth-largest single-day liquidation in crypto history.
• Solana ETF inflows reached $38 million per FX Empire data, while FXStreet reported $28.34 million across four straight days of institutional buying.
• Validators started voting Monday on proposals to ratify the Solana Constitution, accelerate disinflation, and burn transaction fees.
• Technical analysts flag $100 as the next major hurdle, with a confirmed breakout potentially opening a path toward $112.52.

Why Did Solana Price Break Into Bull Market Territory?

Multiple catalysts converged to lift Solana out of its recent range. The SEC's proposed crypto framework reduced regulatory uncertainty, while net inflows into Solana-linked exchange-traded funds climbed to their highest positive print since May.

On-chain data added another bullish signal. A crossover between the 30-day and 50-day moving averages for daily active users previously preceded a major move—in June 2025, that same pattern helped drive SOL from $145 to $245 over several months. Analysts say the move could mark another sustained uptrend.

Prediction markets reflect the broader risk-on mood. Robinhood's crypto event contracts show traders assigning high probability to Bitcoin trading near $78,700–$78,800 on August 24, while a separate SOL contract for August 28 carries a target near $101.70.

Can Solana Price Break Above $100?

After peaking during last week's 27% rebound to a two-month high, SOL traded around $94 on Monday, according to FXStreet. The token remains capped below the $100 psychological level and the May 11 high of $98.41.

Technically, SOL holds a bullish near-term bias above its 50-day EMA near $79.04 and its 200-day EMA near $92.67. Momentum indicators support the uptrend—the Relative Strength Index sits in overbought territory near 79, and the MACD shows a steady upward trajectory with a positive histogram.

A decisive daily close above $100 could unlock the 127.2% Fibonacci extension at $112.52. Until then, initial support sits at the 200-day EMA around $92.67, followed by the 78.6% retracement near $88.56.

What Do Solana's Governance Votes Mean for Holders?

Validator voting on three Solana Governance Proposals began Monday and runs through Thursday. SGP 1 addresses ratifying the Solana Constitution to govern network-level decisions. SGP 2 proposes reducing inflation by increasing the disinflation rate to between -15% and -30%. SGP 3 introduces a fixed base inclusion fee paid to block leaders plus a resource fee that would be burned.

Together, the proposals restructure on-chain decision-making and could reduce pressure on available supply—factors that institutional buyers may weigh alongside ETF inflow data. For more market-moving alerts across digital assets and entertainment, see our Streaming & TV Alerts hub.

Could Solana Price Pull Back Before Rallying Higher?

Not every analyst expects a straight line to $100. FX Empire notes that the vertical nature of the recent rally increases odds of a near-term pullback, possibly toward $83, as the RSI entered overbought territory and today's candle showed a large upper wick reflecting rising sell pressure.

Such a decline would be normal profit-taking after an explosive move. A retracement to the 200-day EMA could offer late entrants a more favorable entry point before the next leg higher—if bulls can defend key support levels.