Why SOL’s Latest Breakout Could Trigger a Massive Short Squeeze

SOL spent weeks pinned between $80 and $87, with tightening Bollinger Bands signaling that a sharp move was coming either way.

Solana’s SOL token jumped past a key technical resistance level at about $93, turning what analysts called a “39-day distribution zone” into a structural floor.

The move has brought two price targets into focus, one being an initial level near $103 and a secondary one near $113.

Breakout Above $93 Shifts Sentiment

In a March 18 post on X, chartist Ali Martinez wrote that SOL’s return above the $93 level had turned a zone previously dominated by sellers into a potential base for further gains.

According to him, the setup has put a short squeeze in motion, meaning those who had bet on lower prices could be forced to buy back their positions, with the price moving against them, which could potentially speed up the rally.

“Solana just reclaimed $93.14, flipping a 39-day distribution zone into a structural floor,” Martinez explained. “If this level holds, a bull rally could happen much faster than people think.”

The breakout fits with other technical signals on longer timeframes, including a recurring pattern on Solana’s weekly chart of back-to-back candles with long lower wicks highlighted by analyst WebTrend.

According to them, the pattern has previously come before major rallies, with the first being in 2023, where it led to a 1,604% gain, and the second occurrence happening in 2025, leading to a 142% move upwards.

Fellow market watcher Bluntz also pointed to a completed accumulation phase following the daily breakout, suggesting that if the prices stay above the mid-$90 range, it could confirm a broader trend reversal.

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Although SOL indeed broke through $93 earlier today to tap $95, it has lost some traction since then and now sits below $90. It has jumped by 7% monthly, but it was still down nearly 25% over the last year. It remains more than 67% below its all-time high of nearly $293, reached about a year ago.

Improving Market Structure, But Confirmation Still in Progress

The current setup is coming off the back of a period of compressed volatility, with Solana previously trading between $80 and $87 as tightening Bollinger Bands pointed to an imminent breakout. At the time, analysts couldn’t decide on the asset’s next direction, with some predicting a move higher and others, like DrBullZeus, claiming SOL could even drop to the $50 level.

Traders could look at ETF data for further context, with figures from SoSoValue showing that as of March 17, there had been almost $1 billion in net inflows into Solana-linked spot products. Furthermore, daily inflows have turned positive again after a brief period of negative movement earlier in the month.