Solana approaches $88 as short squeeze drives gains

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Mykhailo Ihnatenko

20.08.2026

Solana approaches $88 as short squeeze drives gains — Solana approaches $88 as a major short squeeze fuels the breakout.

Solana has accelerated sharply alongside the broader crypto market and is approaching key resistance at $88. A massive short squeeze helped SOL break above both major moving averages, although an overbought RSI is increasing the risk of short-term profit-taking.

Over the past 24 hours, crypto-market liquidations exceeded $3 billion, with the vast majority coming from short positions. Against this backdrop, Bitcoin tested $70,000, while Ethereum briefly climbed above $2,300.

Solana was also among the assets caught up in the short squeeze. According to CoinGlass, SOL liquidations exceeded $105 million, with around $100 million coming from short positions.

The initial catalyst came from an improvement in broader risk sentiment after the U.S. Treasury expanded its program of buybacks of longer-dated government bonds.

Another positive impulse came from Washington. On August 19, President Donald Trump urged Congress to advance the CLARITY Act during a meeting with crypto-industry representatives, supporting expectations for a more favorable regulatory environment for digital assets.

Solana tests $88 as overbought RSI limits upside

Solana decisively broke above 200-day SMA near $81.30 and moved toward key resistance at $88. This scenario was discussed in the previous analysis.

Following the massive short squeeze, $88 becomes the main level to watch for further upside. A sustained move above it could trigger additional short covering and open the way toward the $90–92 area.

However, the RSI (14) has already moved into overbought territory, which could limit further upside without an intermediate pullback.

If profit-taking emerges, the nearest important support is $84. A break below this level could put the 200-day SMA near $81.30 back in focus.

Volatility breakout confirms the compressed-market scenario

Previous analyses repeatedly highlighted that crypto-market volatility was near multi-year lows. In such conditions, prolonged consolidation typically increases the market’s sensitivity to a break of key levels.

That scenario has now played out. Improving macro sentiment provided the initial catalyst, while the subsequent break of resistance triggered a cascade of liquidations and turned a regular advance into a large-scale short squeeze.

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