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▲ Solana (SOL) ©
Amidst a historic short squeeze (buying pressure occurring to liquidate or cover short positions) triggered by easing geopolitical tensions and the massive positive news of XRP (Ripple) joining the DeFi ecosystem, Solana (SOL), the leading asset, is preparing for an explosive rally towards $150, breaking through the formidable $90 resistance line it couldn't surpass for two months.
According to the investment media TradingNews on April 17 (local time), Solana is aggressively attempting to break above $90 by forcing the liquidation of $24 million worth of short positions. Macroeconomic tailwinds such as the opening of the Strait of Hormuz and the de-escalation of the Iran situation acted as catalysts, with trading volume surging by 50% in just 24 hours, leading to active turnover accounting for 13% of the circulating market capitalization. Buying pressure is concentrating on Solana, which exhibits higher volatility than major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), forming a strong upward momentum.
The dual buying pressure, with institutional and individual capital pouring in simultaneously, forms a solid foundation for this bull run. Solana-related Exchange Traded Funds (ETFs) have shown a buying advantage for three consecutive trading days, attracting $22.14 million in institutional funds this week alone. Concurrently, Open Interest in the futures market has soared to $5.53 billion, indicating a rapid influx of speculative leverage capital from individual investors. This has created an ideal structure where both spot and derivatives markets firmly drive the price.
Notably, the official launch of Wrapped XRP (wXRP) into the Solana DeFi ecosystem via Hex Trust and LayerZero infrastructure is considered an opportunity for explosive liquidity expansion. With existing XRP holders now able to participate in the Solana ecosystem without selling their tokens, it has emerged as a key catalyst to overcome the previously declining monthly active user count, which was stuck in the 10 million range. Furthermore, the expansion of stablecoin supply within the network to $15 billion, accumulating massive waiting funds that can be deployed at any time, is also a positive factor.
Technical indicators also clearly support a major uptrend. The current price is using the 50-day Exponential Moving Average (EMA) of $87.42 as a strong support level, and the daily Relative Strength Index (RSI) is at 55, ensuring ample room for further upside without overbought concerns. The Moving Average Convergence Divergence (MACD) is also sending bullish signals, suggesting that if $92 is decisively broken, it could go straight to $120 after reaching the primary target of $100. Conversely, if $87 breaks, there is a risk of a deep retreat to $77.60.
Extreme optimism prevails on market prediction platforms, with experts' bets on reaching $105 hitting 100%. Although macroeconomic uncertainties from dampened expectations of a Federal Reserve interest rate cut have not been fully resolved, the current moment, combining strong institutional accumulation, massive short squeeze volume, and the influx of capital from other ecosystems, is considered the most attractive investment opportunity this year. By adhering to a strict stop-loss principle around $85, it is an aggressive buying zone targeting $105 in the short term and up to $150 in the mid-to-long term.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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