Solana Price Eyes Bullish Breakout Amid Whale Accumulation and TVL Surge

Solana Price Eyes Bullish Breakout Amid Whale Accumulation and TVL Surge

Solana’s price experienced a slight decline of 1.02%, settling at $159 during a relatively calm weekend. This minor dip appears to be a brief pause, allowing buyers to regain momentum following a notable surge earlier in the week. As a result, the bulls may soon attempt a stronger recovery, with the SOL/USDT daily chart revealing the formation of a bull flag pattern.

Solana Price Rebounds Amid TVL Growth and Whale Accumulation

According to on-chain data from lookonchain, a significant whale recently acquired 28,717 SOL, worth approximately $4.56 million, from Binance and staked the entire amount. This substantial purchase reflects the whale’s confidence in Solana’s long-term prospects.

In parallel, Solana’s Total Value Locked (TVL) saw impressive growth in August. Data from DefiLlama indicates that the TVL surged from $3.82 billion to $5.4 billion within three weeks, marking a 42% increase. This rise in TVL highlights the growing confidence and engagement in Solana’s DeFi ecosystem.

The combination of rising TVL and significant whale activity has positively influenced Solana’s price, pushing it to $159 and contributing to a market capitalization of $74.3 billion.

SOL Price Poised for a Flag Pattern Breakout

Solana’s price prediction reflects a significant rally, with the price climbing from $138.7 to $159 within a week—a 15% increase. This bullish reversal coincided with a broader market recovery, as Bitcoin surged past $64,000 on Friday.

The daily chart’s ongoing recovery has further solidified the formation of a bullish continuation pattern known as a flag. Typically, this pattern signals a brief pullback, allowing buyers to gather strength before initiating the next breakout.

Moreover, the price’s recovery above key daily Exponential Moving Averages (20, 50, 100, and 200) suggests a positive shift in market sentiment. Should the buying momentum persist, SOL could see an 18% rise before attempting a major breakout above the flag’s resistance.

A successful breakout above this trendline could propel the price to a further 11.5% increase, targeting $210 and potentially $240. However, if selling pressure at the flag’s upper boundary remains strong, it could trigger another reversal, negating the bullish breakout.