Solana Reclaims $200 as Short Squeeze, ETF hopes, and Institutional Flows Collide

Solana surged 5.6% to reclaim the $200 level for the first time since February, fueled by a confluence of bullish technical, fundamental, and institutional catalysts.

The breakout triggered over $34 million in short liquidations and reignited momentum across the Solana ecosystem amid a broader altcoin rotation.

$200 breakout ignites liquidation spike and upside momentum

The July 22 move confirmed an ascending triangle breakout on Solana’s daily chart, with the $200 level acting as a critical psychological and technical barrier. The breakout unleashed a cascade of algorithmic buying and liquidated $34.59 million in short positions within 24 hours. The RSI (14) spiked to 79.69, signaling strong—but not yet exhausted—momentum, while the MACD histogram remained positive at +3.25.

Traders are now watching the next Fibonacci extension targets at $218.52 (127.2%) and $243.47 (161.8%) for potential upside levels in the coming sessions.

Institutions tighten supply as ETF optimism builds

Beyond technicals, supply-demand dynamics continue to tilt bullish. Mercurity Fintech announced a $200 million commitment toward Solana-based digital asset strategies, further tightening token supply. This follows a significant 141,383 SOL accumulation by DeFi Development Corp, signaling growing institutional conviction in the ecosystem.

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Meanwhile, ETF speculation has resurfaced as a major catalyst. VanEck and Galaxy have advanced their Solana ETF filings, with approval odds reportedly above 80%, according to analysts. This narrative mirrors Ethereum’s recent ETF-driven momentum and has positioned Solana as a frontrunner in the next wave of institutional-accessible Layer 1s.

Jito Labs also added fuel to the fire with the launch of its Block Assembly Marketplace, aimed at enhancing MEV efficiency across the Solana network—another signal of evolving infrastructure strength.

With over $10 billion in open interest (+35% in two weeks), Solana’s derivatives market reflects rising leveraged optimism, suggesting that momentum could extend further if BTC dominance continues to retreat.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.