ORCA's recent market performance has indeed been a bit crazy, and the logic behind this surge is worth a close look. According to on-chain data, ORCA jumped from $0.94 directly to $1.62 in a short period, an increase of over 70%. Such volatility usually doesn't happen out of nowhere.

The main driver should be short squeeze. When the price rises rapidly, those holding short positions start to come under pressure, and a negative funding rate means shorts are paying to maintain their positions. This is like a pressure cooker, and eventually they are forced to close their positions. At the same time, regulatory announcements also boosted this rally, as activity in the Solana ecosystem clearly increased. As one of the main DEXs within the ecosystem, ORCA naturally became a concentration of funds. The 24-hour trading volume once reached $348 million, which is an abnormal spike for ORCA.

However, the current price has already risen to around $1.77. While shorts have been squeezed, new retail investors should be cautious. Some community members are calling for a target of $1.7, but analysts also warn that chasing high in such volatile conditions can lead to getting caught. Personally, if you really want to participate, it might be better to wait until a pullback to the $0.94–$0.96 range, which would offer a more reasonable risk-reward ratio. If the price falls below the $0.91 support, shorts could turn the tide, and the situation might reverse. The Solana ecosystem is indeed heating up, and ORCA's fundamentals are still solid, but this rally has already been quite substantial. Short-term caution is advised.