- Solana surged 17% in a week, hitting $244 and marking its highest level in eight months.
- Whale transfers and minor sell-offs hint at possible profit-taking ahead.
- A $49 million short squeeze drove the latest rally, with eyes now on $295–$300 if momentum continues.
Solana (SOL) has been one of the week’s strongest performers, thanks to a wave of liquidity rotation that pushed the token into fresh highs. The coin climbed above $240, with a brief spike to $244 in the last 24 hours before cooling slightly. At press time, SOL was trading around $237, securing a 17% weekly gain and marking its highest level in eight months.
On the daily chart, Solana looked overheated after this push, with technicals flashing overbought conditions. That doesn’t mean momentum is gone, but it does open the door for some profit-taking as traders lock in gains. Already, hints of cooling pressure were showing up in market flows.
Whale Activity Raises Risk of a Selloff
One of the bigger red flags comes from whale transactions. A transfer of 520,479 SOL, worth roughly $125 million, was spotted moving from a private wallet to Coinbase. Moves like this often signal looming sell pressure, especially when they align with local highs.
Meanwhile, Binance whales dumped about $14 million worth of SOL in just 24 hours, with combined outflows across Binance, OKX, and Coinbase hitting $11 million. While that may sound big, in the grand picture it’s relatively minor compared to Solana’s overall volume. Still, these signs point to whales trimming positions after the rally.
Short Squeeze Ignites Solana’s Breakout
The latest upside wasn’t just natural momentum—it was fueled by a massive short squeeze. On Friday, shorts worth $49 million were liquidated, the biggest single-day wipeout in over six months. With bearish traders caught off guard, price surged higher as forced liquidations stacked buying pressure on the market.
Funding rates flipped negative during the same period, showing just how heavy bearish expectations had become. With open interest climbing to $16 billion, the shakeout cleared the way for an explosive move. Binance’s liquidation heatmap showed short liquidations piling up at $244, with even higher exposure—$143 million—sitting at $245. This gave price an incentive to push just a little further.
Solana Price Outlook: Can $300 Come Into Play?
Beyond the immediate breakout, Solana still faces risks on the downside. The liquidation heatmap flagged about $200 million in long liquidation leverage sitting near the $137 level, meaning a sharp retracement could wipe out overexposed longs.
Even so, upside potential remains strong. If momentum holds, SOL could challenge its previous high at $295 and maybe even break $300 this month. Pullbacks are expected along the way, but with Solana’s dominance spiking, liquidity rotation still appears to be favoring its network. For now, traders are eyeing both ends of the chart: one path toward new highs, another toward a liquidity sweep.
