Solana price forms bullish setup above $96 support

Solana (SOL) rose from $85.37 on Aug. 20 to an intraday high above $102.59 on Aug. 25, delivering a gain of more than 20% at its peak. After profit‑taking, the token settled near $97.50, still up about 14% over the past week.

Technical picture

The daily chart shows SOL breaking above the $87.50 and $93.75 Murrey Math levels, both previously acting as resistance. A brief breach of the $100 “ultimate resistance” was followed by sellers pushing the price lower, leaving the token just below that psychological barrier. The daily RSI sits at 79.32, well above the typical overbought threshold of 70, while the 20‑period moving average is at 68.71, confirming strong recent momentum.

4‑hour view

On the 4‑hour chart, SOL traded at $97.53, above the middle Bollinger Band ($96.67). The upper band at $101.04 aligns with the $100 level and the recent rejection zone. A close above $101.04 could open the path to $102.59‑$103.08, with $106.25 as the next Murrey Math target. The Chaikin Money Flow indicator is +0.14, indicating buying pressure exceeds selling pressure.

Market drivers

The rally coincided with a broader crypto market upswing driven by lower U.S. Treasury yields, a weaker dollar, and the liquidation of more than $4 billion in short positions across digital assets. Short covering and momentum buying helped SOL move through the $100 barrier.

Regulatory sentiment also improved after the SEC’s proposed crypto framework and renewed congressional focus on the Digital Asset Market Clarity Act. On‑chain, the Solana community opened voting on a Resource Fee Proposal that would separate inclusion fees from compute fees and burn the latter, potentially linking high network usage to increased SOL burns.

Institutional demand added support, with spot Solana ETFs recording roughly $65.74 million in net inflows this week, the highest weekly inflow in 2026. Network activity rose as Solana overtook Base in daily x402 micropayment transactions, and Ramp integrated AI‑agent wallet support on Solana.

Liquidity landscape

CoinGlass’ 24‑hour liquidation heatmap shows dense leveraged positions just above the current price, especially around $98.90‑$99.10, $99.50 and $100. A move above $99 could trigger short liquidations and fuel another push toward $100‑$103. Conversely, liquidity clusters below $96, $95 and $94 could pull price lower if the upward move stalls.

Analyst outlook

Views diverge:

• Altcoin Sherpa projects a rally to $120+ if broader crypto conditions stay supportive, citing the need to clear $100, $103.08, $106.25 and $112.50.
• Haris warns of a possible bull trap, noting repeated rejections between $98 and $102. He targets $92 as the first downside level, with a deeper decline toward $80‑$88 if that support fails.

The immediate direction hinges on whether buyers can hold above $96.67 and break the $100‑$103 zone, or whether a drop below $92.30 triggers a broader retest of the breakout.