Solana Price Prediction: Can Short Squeeze Drive SOL To $270?

Solana Price Prediction: Will SOL Break $270?

Solana (SOL) is facing a possible squeeze to new highs with short trades stacked against the trend. On the daily chart, the crypto is trading inside a narrow consolidation channel after breaking past $238 support. Price is now hovering near $247, where bulls are attempting to hold momentum against rising resistance. The key levels in play are $240–$245 on the downside and $270 on the upside, as the market waits for confirmation of direction.

SOLUSDT 1H CHART | SOURCE: X

The short-term structure shows bullish energy returning after weeks of sideways action. Price lifted from the $235–$238 zone, signaling renewed demand at lower levels, while open interest climbed in parallel. However, a large portion of new positions are shorts, suggesting traders are betting on a pullback. Historically, such setups often create fuel for a squeeze, and if momentum holds, the next breakout could be fast.

The two-month chart also demonstrates a larger bull pennant, whereby the price now stands above the main breakout line. In the event that buyers can hold control above the $245 level, the target at $270 will be achievable, with additional gain of the stock reaching $300 level. 

However, the risk of not defending support would send the price back to $230, nullifying the case of an immediate breakout.

SOL Treasury Accumulation Signals Institutional Confidence

Market sentiment has shifted as institutional activity grows across leading layer-1 networks. Recent flows show digital asset treasuries expanding holdings not only in Bitcoin and Ethereum but also in Solana. 

SOURCE: X

Moreover, the accumulation rate is impressive, although its share is lower in absolute terms. Also, this points to the fact that treasury managers are starting to take the token beyond a speculative bet, and are diversifying their allocations as the trend gains.

This structural accumulation is in line with the greater expansion of the ecosystem. Further, the chain continues to be developed, while payments and DeFi partnerships bolster credibility. The growth curve of Solana is viewed to increase quickly over its peers in terms of treasury positioning, supporting the long-term bullish argument.

Solana Faces Key Levels With Bullish Momentum Building

The gradual increase in treasury allocation is a sign of more appreciation of Solana as a strategic asset. The trend is in favor of trust in the permanence of the network, with 0.72% of supply in treasuries. Also, the liquidity staking helps in introducing utility and strengthening the long-term demand for tokens.

Additionally, immediate focus is on whether Solana can hold $245 and build strength toward $270. An effective short squeeze above resistance may take the rally to $300 zone, and a breakout of the long-term pennant projects even further. 

On the other hand, dipping deeper to $240 would weaken the bullish setup and expose $230 as the next support.

Meanwhile, as there has been an increase in treasury demand coupled with a positive technical structure, momentum leans biased towards the upside. However, as usual in crypto markets, volatility works both ways, with opportunity and risk remaining open to either in the coming weeks.