SOL is currently at a delicate moment—the price is oscillating around key moving averages, while over 63% of positions in the market are on the short side. This setup is actually quite interesting: shorts make up a high percentage, but they're spread out across platforms. Once the price starts to move, the chain reaction could be much more intense than expected.

A look at some data makes things clearer:

Shorts account for 63.9%, and they're not concentrated—this means there isn't as much resistance on the way up. Once those scattered short positions start hitting stop-losses or getting liquidated, buying pressure can come from all directions.

The sideways period is getting longer, and the moving averages are converging—this usually isn't a sign that the market is losing steam, but rather that it's building up strength. The market needs time to digest differences before a direction is established.

Short squeeze data is there to see, with the liquidation ratio reaching 4.6x—this shows that the cost and risk of shorting are accumulating, and the potential buying power on the long side has always been there.

A few practical words from a strategy perspective:

Don’t wait for an even clearer signal. At this kind of level, by the time the direction is obvious, the price will have already moved.

If you want to position, the $134 area is worth considering. Building your position in batches is safer than going all in at once.

Don’t set unrealistic targets—$137.3 is the first resistance. If it holds above that, look at $145. If the move really takes off, $155 isn’t out of the question.

But you must set your stop-loss: $130 is a key support. If it breaks, it means your judgment was wrong—get out, don’t hold and hope.

One last honest truth: only use spare funds, so a loss won’t affect your life, and if you win, you’ve seized an opportunity. Most of the time, the market just grinds sideways; the real breakout often happens in an instant. When all the data points to “gearing up for a move,” will you be in position early, or will you chase after the breakout has already happened?