Key Insights:
- Solana is testing a major resistance level at $130.
- A whale accumulated $3.72M worth of SOL after six months.
- Ecosystem upgrades and ETF interest are fueling bullish sentiment.
SOL price is approaching a critical resistance level of $130, which could mark the beginning of a breakout. A recent whale purchase of $3.72 million in Solana and rising decentralized exchange (DEX) volume suggest that bullish momentum is building. Solana is showing signs of a potential rally with ecosystem upgrades and ETF proposals on the horizon.
Whale Activity and Market Confidence
Data from Lookonchain revealed that a large whale accumulated 32,000 SOL (around $3.72 million). This came after a long period of inactivity, as the whale had previously purchased 30,541 SOL in 2020 for $6.61 million at a price of $216.
The investor bought SOL when the price was just above $10 and chose not to sell, even as the price fell below that level. This decision highlighted their confidence in Solana’s long-term potential.
This recent purchase after six months of inactivity signaled renewed confidence in Solana’s outlook, especially with the current price remaining far below the whale’s original buy-in. Many analysts viewed such transactions as indicators that high-net-worth investors believed the asset was undervalued, potentially prompting more accumulation.
SOL is Approaching Key Resistance
Solana tested a critical resistance level at $130. The price had been consolidating within a falling wedge pattern, which typically signals a potential breakout. According to analyst TedPillows, this wedge could resolve with a breakout if the price closed above $130 on the daily chart. The $130 level was seen as crucial because a close above it could trigger further upward momentum.
After a 60% drop from its all-time high, Solana appeared to have completed a capitulation phase. Key market signals indicated that a reversal was likely. A breakout above $130 would have suggested a bullish continuation, implying that Solana was entering a new leg upward.
Bullish Catalysts Fueling Solana’s Growth
Bullish sentiment for Solana was also fueled by ecosystem developments. Stablecoin supply on Solana increased by 140% in the past month, reflecting growing usage of the network.
Solana’s DEX volume ranked highest among all chains for 24-hour activity, suggesting renewed investor participation. This showed Solana’s growing presence in the decentralized finance (DeFi) sector.
In addition, the planned Firedancer upgrade aimed to boost network scalability, allowing for faster transaction speeds. The combination of this upgrade, a rising stablecoin supply, and high DEX volume supported bullish expectations.
SOL Price Target and Market Outlook
A breakout above the $130 resistance and successful retest would have opened the path toward the $240 target. That would have marked a major rally from its current price of $112.27. The RSI stood at 41.20, indicating that SOL was not yet overbought and had further upside potential if momentum continued to build.
The recent rise in the price has received buying pressure confirmation as the Cumulative Volume Delta (CVD) indicator, which tracks buying and selling volume, has increased its buying pressure. If Solana breaks above the resistance trendline, it could trigger a strong buying spree, pushing the price further toward the $240 target.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.