Solana (SOL) Sees Bullish Surge Following Short Liquidations, Sets $230 Target

Solana (SOL) has experienced a significant market shift, transitioning from bearish pressures driven by short selling to a strong and sustained bullish rally. This upward momentum, triggered by the unwinding of short positions, now positions Solana for a potential breakthrough toward its $230 price target. Supported by technical analysis, market dynamics, and investor sentiment, the cryptocurrency is showcasing robust upward potential.

Short Positions Fade, Fueling Bullish Momentum

As of October 28, Solana (SOL) has risen to approximately $200, according to CoinMarketCap data. After dipping near $190 last week, the market reversed direction as the unwinding of short positions alleviated selling pressure and intensified buying activity.

Prominent trader CW8900 commented, “Short positions on Solana have nearly been eliminated, channeling liquidity into the upper ranges. This reflects a classic structure where buying momentum has fully captured the market.”

This shift has skewed the market’s open interest toward long positions, with strong buying pressure emerging at each key price level. Current trading volumes signal healthy market enthusiasm, and analysts now view the $198–$200 range as crucial support zones. Meanwhile, all eyes are set on the $230 target as the next major upside threshold.

Technical Indicators Confirm Bullish Trend

Technical analysis reinforces the bullish outlook for Solana. On the 4-hour chart, Solana has completed a breakout above the Ichimoku Cloud—a clear signal of trend reversal. The cryptocurrency is now steadily trading above both the conversion line and baseline, with the Leading Span of the cloud expanding upward. This widening of the span suggests a strengthening bullish phase.

Technical analyst AliseeisW commented, “The next resistance level aligns with $230, a previous swing high that could unlock further gains. If Solana consolidates above the $198–$200 range, the price could extend into the $230–$238 zone.”

AliseeisW also underlined the cryptocurrency’s medium- to long-term bullish structure, emphasizing its pattern of “higher highs and higher lows” since early 2023. This consistent trajectory underscores Solana’s structural integrity and favorable positioning, with support levels at $180–$190 remaining firm.

Meanwhile, long-term targets are on the horizon, as highlighted by TraderSZ. These aim to revisit resistance areas seen during Solana’s monumental rally in 2021, specifically at $300, $390, and $520. TraderSZ noted, “As long as $180–$190 holds, Solana’s long-term bullish trend remains intact, offering promising prospects for sustained growth.”

Resistance Levels and RSI Indicate Room for Growth

In the short term, Solana’s performance continues to inspire confidence among market participants. Analyst ShardiB2 noted, “Solana has successfully reclaimed both its 50-day and 200-day moving averages, signaling an ideal textbook bullish reversal.” Additionally, the Relative Strength Index (RSI) currently hovers in the mid-60s range, avoiding overbought territory and leaving ample room for further price appreciation.

Key short-term resistance levels include $216 and $227. According to ShardiB2, a decisive close above $205 could catalyze accelerated bullish momentum, paving the way for Solana to challenge its targets in the $230+ range.

Conclusion: Solana Positions for a Breakout

With bearish pressures from short selling largely neutralized, Solana has entered a pivotal phase, where buyers are firmly in control of the market. The cryptocurrency is approaching the $230 benchmark as its immediate target, buoyed by robust technical indicators and growing investor confidence. Both short- and long-term metrics suggest that Solana has the structural support needed to maintain its bullish trajectory. Market participants remain watchful, anticipating Solana’s next breakout as it strives to solidify its gains and unlock higher price levels in the near future.