Solana (SOL) Surges Past $117 as Bears Lose $18M in Massive Short Squeeze

Key Highlights

• Solana reached $117.23 on September 21, marking its strongest performance since early January
• Short sellers faced more than $18 million in liquidations within a single day
• Trading activity in derivatives markets exploded by 88.78%, hitting $13.28 billion
• Kyle Samani from Multicoin Capital forecasts SOL will overtake ETH in market capitalization during this cycle
• Critical resistance levels to watch include $120, $125, and $130

On September 21, 2026, Solana experienced a powerful rally, climbing to $117.23—a price level not witnessed since the beginning of the year. This upward momentum coincided with Bitcoin’s breakthrough above $86,000, marking its first time crossing that threshold in 2026 and lifting the entire cryptocurrency sector.

The token posted an impressive 7.37% gain over 24 hours, edging out the broader cryptocurrency market’s 4.82% advance. Total market capitalization expanded to $2.88 trillion during this period. Ethereum broke through the $2,700 barrier while XRP posted gains approaching 10% in the same trading window.

This price surge created havoc for bearish traders. More than $18 million worth of SOL short positions faced forced liquidation within a single day. Market-wide liquidations totaled $900 million across leveraged positions, with $260 million in short positions closing within just 60 minutes.

Market analyst Gerla offered an optimistic perspective, explaining that SOL had undergone approximately seven days of accumulation followed by 230 days of market manipulation before transitioning into what he identified as a “major markup phase.” His analysis pointed to a $500 price objective, with the primary uncertainty being the timeline for reaching that milestone.

Futures and Options Markets Show Strong Momentum

Trading opened at $116.80 before SOL briefly touched $119.15 during the session. The cryptocurrency had established solid support around the $108 level throughout the weekend before launching its upward move.

Chart analysis reveals bullish momentum building. The Relative Strength Index registered 65.58 with an upward trajectory. Meanwhile, the Chaikin Money Flow indicator showed a reading of 0.30, signaling buying pressure above neutral territory and indicating sustained market demand.

Derivatives market data reinforces the price movement’s strength. Overall trading volume surged 88.78% to reach $13.28 billion. Open interest expanded by 10% to $7.33 billion. Options volume experienced an even more dramatic spike, jumping 111% to $37.08 million, reflecting heightened activity among short-term traders.

Market observers are focused on $120 as a critical threshold. Closing above this level on a four-hour timeframe would validate the next bullish leg, potentially targeting $125 and $130. Downside protection appears established at $114 and $110.

Multicoin’s Samani Predicts Market Cap Flip

This price action accompanies growing discussion about Solana’s competitive positioning in the cryptocurrency landscape. Kyle Samani, co-founder of Multicoin Capital, stated during a recent interview that he expects SOL to exceed Ethereum’s market capitalization “this market cycle.”

Samani contends that Ethereum’s valuation relies heavily on stablecoins and collateralized lending activity. He characterized ETH as having “questionable value accrual” mechanics and expressed skepticism about maintaining current price levels based on investor rationale.

Currently, Solana commands a market capitalization near $58 billion, while Ethereum holds approximately $293 billion. For a market cap flip to materialize, SOL would need to appreciate roughly five times from present levels.

Interestingly, Solana has already overtaken Ethereum in fee generation metrics. Throughout the last 30 days, Solana produced $23 million in fees, securing fourth position. Ethereum generated $12.6 million during the same period, landing in sixth place according to DefiLlama data.

As of September 21, SOL’s open interest reached $7.33 billion, while options open interest stood at $197.22 million.