Solana is showing renewed strength after reclaiming a key price level, sparking speculation that a short squeeze could be imminent. As traders positioned for further downside, the asset has moved in the opposite direction, forcing a reassessment of near-term market sentiment.
Solana Reclaims Key Support as Short Squeeze Pressure Builds
Market expert Ali Martinez recently claimed on X that Solana is facing an imminent short squeeze. In technical analysis, a short squeeze is a bullish signal that occurs when traders betting against an asset are forced to exit their positions as prices rise, thereby fueling an aggressive uptrend.
According to Martinez, many market participants had anticipated further downside for Solana. However, after trading sideways for several weeks, SOL recently surged past $93.14, flipping a level that had acted as a distribution zone for 39 days into a structural support base.
Following his analysis of Solana’s price chart on the 1-hour timeframe, Martinez noted that if SOL can maintain strength above this level, the asset could quickly rally toward $102.67. A sustained move beyond this point may then open the door for a further push toward $113.16. This shift in structure suggests growing bullish momentum and raises the likelihood that short positions will be squeezed further, potentially accelerating the rally.
Regulatory Clarity and ETF Inflows Strengthen Bullish Case
Martinez’s bullish speculation comes shortly after U.S. regulators classified Solana, alongside other crypto assets, as non-securities in their recent comprehensive guidance on digital assets. In the new clarification, the U.S. Securities and Exchange Commission (SEC), in conjunction with the Commodity Futures Trading Commission (CFTC), placed digital assets into four categories, with a fifth reserved for digital securities.
Notably, Solana was categorized as a digital commodity, meaning it is not considered a security. This classification is widely viewed as a positive development, as it provides clearer regulatory standing and could reduce legal uncertainty surrounding the asset.
Meanwhile, data from SoSoValue show that Solana spot ETFs recorded a modest $17.81 million inflow as of March 17, 2026, signaling growing institutional interest. The inflows suggest that despite recent market volatility, larger investors are beginning to position themselves for potential upside.
Together, improving regulatory clarity and rising institutional participation add further weight to the bullish narrative surrounding Solana, reinforcing expectations of a potential breakout if current momentum holds. According to data from CoinMarketCap, SOL has briefly dipped to the $92 mark
Evans Kelvin
The CoinRemark Team
