- SOL retraces to $150–$160 demand zone after topping $206, with potential 16% rebound ahead.
- Institutional interest surges as CME SOL futures open interest jumps 370% to $800 million.
- $73M in shorts above $170.4 creates a possible short squeeze if price reclaims $166.8 level.
Solana (SOL) has sharply corrected after reaching above $206, now entering a critical demand area between $150 and $160. This zone has previously triggered strong bullish reactions, with historical data showing consistent buyer interest. At the time of writing, SOL was trading at $162 as market participants watched for a possible bounce of over 16% from this area.
SOL Revisits Demand Zone Following July Peak
According to an analysis prepared by CryptoGuru, Solana topped out above $206 before retreating to the $150–$160 zone. This area has historically marked key support, sparking strong bullish moves in previous market cycles. Price recently bounced off $160.50, producing a 16.78% gain during a short-term recovery.
Volume data indicates increased activity near current levels, suggesting rising interest from both buyers and sellers. The zone also aligns with the 0.618 Fibonacci retracement level from the recent leg up, reinforcing its technical relevance. A confirmed rebound here could lead to short-term upside toward $180 and beyond.
Solana’s RSI has cooled to 42.43, moving away from overbought conditions seen during July’s rally. The MACD histogram remains negative, reflecting short-term bearish pressure. However, this pattern has previously preceded reversals, adding weight to this demand zone.
Institutional Activity and Technical Support Align
According to SolanaFloor, Solana’s CME futures open interest has grown by 370%, now reaching $800 million. This rise follows the approval of the first Solana staking ETF in the U.S., indicating growing institutional appetite.
The demand surge has pushed CME ahead of other major futures platforms. Data from CW8900 shows $73 million in short positions stacked above $170.4, creating a potential short squeeze trigger.
If the price reaches $166.8, many short positions could be liquidated. Technical structure remains intact as SOL holds above the 50-day and 200-day moving averages near $161, offering further support for potential bullish continuation.
