Solana Retail Longs Spike as SOL Eyes $180 Breakout

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Key Takeaways:

• Solana retail long positioning is at extreme levels, suggesting a crowded trade.
  
• A key liquidity pocket near $183 could fuel volatility and a short squeeze.
  
• The $190 level could be in play—if retail positioning cools without a sharp correction.

Solana (SOL) has sharply retraced from its recent high of $206, giving up nearly half of its monthly gains. Despite this drawdown, retail traders are doubling down on long positions, driving open interest and signaling a potential breakout—or a dangerous setup for late longs.

Retail Traders Heavily Long Solana

According to recent market positioning data, SOLUSDT retail long exposure has jumped from 72.68 to 75.25 in just 24 hours—landing in the 91st percentile. That’s an extreme reading, especially when compared to Ethereum (ETHUSDT), which sits at a more moderate 58.21 and 28th percentile.

This divergence signals retail traders are aggressively betting on Solana’s rebound, despite the recent slide. The market’s directional bias is clearly tilted, raising questions about whether the move is sustainable or due for another shakeout.

$SOL has a high retail long% (91st percentile). If this starts reversing (retail long% decreases because shorts enter and longs exit), then price may rise to trap those shorts.

Keep an eye on those liq clusters pic.twitter.com/Y0zAMqGbw9

— Hyblock (@hyblockcapital) July 29, 2025

Key Liquidity Pocket Could Trigger Volatility

Solana is currently hovering around $180, testing a local resistance level while showing signs of structural tension. Nearly $11 million in leveraged longs sit clustered near $183.30, forming a liquidity pocket that could serve as rocket fuel for a sharp leg higher—especially if shorts get caught offside on a breakout past $185.

However, despite three consecutive lower daily closes, open interest has continued to rise, suggesting dip-buying behavior. At the same time, the funding rate has flipped positive—from -0.16% to +0.0079%—indicating that the bias has shifted back toward longs.

Is Solana Primed for a Squeeze or Reset?

With SOL’s structure becoming top-heavy, the next big catalyst may come from shifts in retail positioning. If retail longs start to unwind while price holds steady or grinds upward, it could indicate a healthy reset, clearing out froth and setting up the conditions for a short squeeze toward $190.

Also Read: Rugproof or Rug Setup? Bubblemaps Uncovers Suspicious Token Activity on Solana

On the other hand, if the weight of long interest overwhelms price momentum, another open interest flush could knock SOL lower before any real breakout materializes.

Solana is at a pivotal moment. Whether this retail-driven surge turns into a breakout or a trap hinges on how long positions evolve near resistance.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.