The broader crypto market rallied over a 24-hour period, pushing Bitcoin and various altcoins past key resistance levels. Amid this movement, Solana cleared the $80 supply zone following a move of over 10% on August 19, bringing focus back to a potential target of $100.
Data indicates that Solana's tokenization and exchange-traded fund momentum are increasing. Tokenized stocks on Solana from Backpack and Sunrise have outperformed U.S. exchanges outside of regular trading hours, pointing to the network's potential as an alternative to traditional market infrastructure. Additionally, SoSoValue reported that Solana ETFs recorded over $10 million in net inflows for the week, marking the strongest weekly inflow since the May cycle.
Market activity accompanying the price move included significant liquidations. According to SolanaFloor, nearly $40 million in SOL short positions were liquidated as the asset moved back above $80, including a single short liquidation of $1 million near the $82 level. At the same time, leveraged long positions increased, with Arkham noting a $40 million leveraged long opened by a single trader.
Despite strengthening fundamentals and institutional interest, some analysts remain cautious about the sustainability of the move toward the $100 target. Observers note that while the SOL/BTC ratio has trended upward, it remains below the 0.0013 resistance level seen in early July. Without stronger SOL/BTC momentum, analysts warn that the rising leveraged long positions carry the risk of a bull trap if the rally proves to be driven largely by short-term capital rotation.
