Solana Breaks Key Resistance as Shorts Take $23.7M Hit; AI Flags Next Levels

Solana (SOL) has pushed through its most important resistance in months, leaving traders positioned for a drop on the wrong side of the move. SOL is changing hands around $117.60, up 5.8% on the day, as a sharp short squeeze and renewed ETF demand fuel the rally. The advance comes alongside a broader rebound across crypto markets, with Bitcoin back above $85,000 for the first time in eight months. Solana's surge stands out on its own metrics: volatility reached 9.52% today, daily trading volume rose to $988 million, and the token is back at levels last seen before the February selloff. After finding a July low near $60, SOL has more than doubled. ETF flows are adding a steady bid. U.S. spot Solana ETFs posted $47.62 million in net inflows on September 18, with Bitwise's $BSOL accounting for the entire day's intake, according to data shared by SolanaFloor. Liquidations underline how one-sided positioning had become. Coinglass data show $23.72 million of SOL positions were liquidated over the past 24 hours across 3,968 traders. Shorts made up $21.59 million of the total versus $2.08 million in longs, meaning more than 90% of the losses hit traders betting against SOL. The largest single liquidation totaled $973,702, while liquidation pressure peaked between 10:00 and 11:00 UTC as the breakout accelerated. Overall liquidations are running at 1.22 times the seven-day average, consistent with an active squeeze rather than a routine session. Spot ETF demand has been firmer than leveraged flows. U.S. Solana ETFs absorbed 468,600 SOL on September 18 alone, worth roughly $55 million at current prices, marking their strongest day of the month. Since launch, these funds have accumulated about 652,500 SOL, valued near $77 million, with BSOL holding 604,190 SOL. Flows were uneven in early September, including quiet sessions and small outflows, but the net trend remains positive—and ETF buyers are not forced to sell on dips the way leveraged traders can be. On the technical picture, SOL reclaimed $96.24 earlier this month, a level that capped price action through the summer. The 200-day moving average is now near $83.90, flattening and turning higher after a prolonged decline, with SOL trading comfortably above it. ChatGPT's level roadmap highlights three key zones: • Immediate test: $118.60. SOL is pressing into this area; a daily close above it would strengthen the breakout signal. • Next target: $130–$140. With limited overhead resistance between $120 and $145, momentum could carry quickly if short covering continues. • Support to watch: $96.24. Former resistance is expected to act as a floor; holding it keeps the recovery structure intact. The primary risk is that squeeze-driven rallies can reverse once forced buying fades. If SOL fails to clear $118.60 and drops back below $96, the 200-day average near $83.90 becomes the next key support. For now, ETF inflows and heavy short liquidations are keeping bulls in control.