Solana’s Comeback: Short Sellers Burned as Price Rockets Past $90 in Relentless Squeeze

If you’re a crypto trader who still believes in gravity, Solana just made you look like a Flat Earther. On March 16, 2026, as the rest of the digital asset complex nursed hangovers from January’s blow-off top, Solana staged a comeback that would make even the most jaded DeFi degens blink. The price surged past $90, torching short sellers who had been piling in since the network’s January high near $295. This isn’t just a dead cat bounce. It’s a full-blown, algorithmic bonfire, and the smoke is coming from liquidated shorts.

The facts are brutal for the bears. According to Blockonomi, Solana’s rebound has been sharp and decisive, with price action accumulating approximately 40% gains from the February lows. The move past $90 is significant not just for the round number psychology but for the sheer volume of liquidations it triggered. Open interest on major derivatives exchanges spiked, and funding rates flipped positive, a classic sign that shorts are scrambling for the exits while late longs FOMO in. The catalyst? A cocktail of easing Iran tensions (which took some macro fear out of the market), a broader crypto rebound led by Bitcoin’s push above $74,000, and a dash of DeFi optimism as Solana’s ecosystem shrugged off January’s exploits.

But let’s not pretend this is a story about fundamentals. Solana’s network activity, while recovering, is still down from its November 2025 peak. TVL remains a shadow of its former self, and NFT volumes are a pale imitation of the 2021 mania. What’s driving this move is pure positioning. Short interest had ballooned as Solana cratered from $295 to sub-$70, with traders betting on further collapse as regulatory and technical FUD swirled. Instead, the market did what it does best: punish consensus. The squeeze was relentless, with cascading liquidations fueling a feedback loop that sent price through every obvious resistance level on the chart.

Historically, Solana has been the graveyard of overconfident shorts. Every time the network looks dead, it lurches back to life with a vengeance. In late 2022, the FTX collapse was supposed to be the end. Instead, Solana rallied 300% into 2023. The January 2026 dump was supposed to be the final nail. Now, here we are again, with the market’s pain trade running the show. Correlations with Ethereum and Bitcoin have broken down, as Solana’s beta spikes in both directions. Macro volatility, especially around oil and the Middle East, has created a risk-on/risk-off whiplash, but Solana has managed to decouple, at least for now.

The real story here isn’t about Solana’s tech, or even its DeFi ecosystem. It’s about leverage. The market was lulled into a false sense of security by the January correction, and traders got greedy on the short side. The result: a classic short squeeze, turbocharged by thin order books and a lack of real sellers at these levels. This is the kind of price action that makes market makers rich and retail traders question their life choices. The lesson? Never bet on consensus in crypto, especially when the crowd is leaning hard in one direction.

Strykr Watch

Technically, Solana is now in no man’s land. The move above $90 blew through resistance at $85, and there’s little in the way until $105, the next major supply zone from December 2025. Support is now layered at $82 and $75, both of which saw heavy volume on the way up. The 50-day moving average is playing catch-up at $79, while RSI is pushing into overbought territory above 70. Momentum is strong, but the risk of a snapback grows with every parabolic candle. Watch for funding rates on perpetuals, if they stay elevated, expect more volatility as late longs get shaken out.

On-chain data shows a modest uptick in active addresses and transaction count, but nothing that justifies the velocity of this move. This is a trader’s market, not an investor’s. The next inflection point is likely to come from derivatives positioning. If open interest continues to climb without a corresponding increase in spot volume, expect fireworks, either a blow-off top or a savage retrace. For now, the path of least resistance is higher, but the air is getting thin.

The bear case is simple: this is just another squeeze, and the fundamentals haven’t improved enough to sustain a rally. If Solana fails to hold above $90, the unwind could be vicious, with targets back to $80 and even $70 if the broader crypto market rolls over. Macro risks remain, especially if Iran tensions flare up again or if Bitcoin fails to hold its own breakout. The bull case? Momentum is a powerful drug, and with shorts still licking their wounds, there’s room for another leg higher. If Solana can reclaim $105, the narrative shifts from “dead chain” to “comeback kid” in a hurry.

For traders, the opportunity is in the volatility. Aggressive longs can look for pullbacks to $85-$88 as entry zones, with tight stops below $82. Shorts should wait for signs of exhaustion, RSI divergence, funding flips, or a failed breakout above $95. The risk/reward favors nimble positioning, not hero trades. Don’t marry your bias. This is a market that punishes conviction and rewards flexibility.

Strykr Take

Solana’s squeeze is a masterclass in market psychology. The fundamentals haven’t changed, but the positioning has. This isn’t a buy-and-hold moment, it’s a trader’s paradise, with volatility cranked to eleven. Play the momentum, but keep your stops tight and your ego in check. The only certainty is more chaos ahead.