Solana’s SOL Tops $191 After $11M in Shorts Liquidated and Fund Inflows Hit $39M
Solana (SOL) experienced a significant price surge, reaching $191.56 on Monday, fueled by a combination of factors. A wave of short liquidations, exceeding $11 million, contributed significantly to the upward momentum. The largest single liquidation, totaling $1.13 million at $188, highlights the extent to which bearish positions were caught off guard by the rapid price increase. This suggests a considerable amount of aggressive short selling prior to the rally.
The price increase wasn’t solely driven by short squeezes. Institutional investment played a crucial role. CoinShares’ Digital Asset Fund Flows Weekly Report revealed $39 million in inflows into Solana products during the week ending July 19th, indicating substantial institutional confidence and participation in the market.
Technical analysis further supports the bullish trend. Between July 20th, 09:00 UTC and July 21st, 08:00 UTC, SOL climbed 5.01%, rising from $180.77 to $189.82. Trading occurred within a range of $178.08 to $190.77, representing a 6.65% spread. Key support solidified at $178.30, marked by strong buying volume peaking at 2.27 million at 22:00 UTC on July 20th. Resistance at $183.20 was decisively broken early on July 21st, with consistent volume exceeding the 24-hour average of 1.29 million.
The final hour of the trading period (July 21st, 07:09–08:08 UTC) witnessed SOL move from $189.26 to $189.70, reaching a peak of $190.77 at 07:48 UTC. Volume surged to over 65,000 during the 07:37–07:48 UTC rally, followed by minor profit-taking before the close. While some analysts, like DonAlt, maintain a preference for Ethereum, they acknowledge Solana’s potential breakout, suggesting further upward movement is possible if current momentum persists above existing resistance levels. The confluence of short liquidations, institutional inflows, and strong technical indicators paints a picture of a robust bullish trend for Solana.
