Solana Price 18% Away from Major Flag Pattern Breakout

Solana price dipped slightly by 1.02% to $159 during the relatively calm weekend. This minor pullback suggests a brief pause for buyers to regain strength after notable growth earlier in the week. Thus, the bulls may soon push for a stronger recovery, with the SOL/USDT daily chart forming a bull flag pattern.

Solana Price Bounced Amid TVL Spike and Whale Accumulation

According to the on-chain tracker lookonchain, a whale recently purchased 28,717 SOL, valued at approximately $4.56 million, from Binance and staked the entire amount. This substantial acquisition indicates the whale’s confidence in Solana’s long-term potential.

A whale bought 28,717 $SOL($4.56M) from #Binance today and staked it.https://t.co/X26MdvAuKh pic.twitter.com/iavZfNs9mb

— Lookonchain (@lookonchain) August 25, 2024

In addition, the Total Value Locked (TVL) in Solana witnessed notable growth in August. Data from DefiLlama shows a bounce from $3.82 to $5.4 Billion within three weeks, registering a 42% spike. This TVL increase indicates growing confidence and participation in Solana’s DeFi ecosystem.

The rising TVL and significant whale activity substantially impacted the Solana price. This development has boosted the coin price to $159, contributing to a market cap of $74.3 Billion.

SOL Price Heading For a Flag Pattern Breakout

The Solana price prediction showcased a notable swing from $138.7 to $159 within a week, registering a 15% growth. This bullish turnaround followed the broader market recovery as Bitcoin price rallied above $64000 on Friday.

Moreover, the daily chart reversal of the current recovery bolstered the formation of a bullish continuation pattern flag. In theory, this pattern drives a temporary pullback for buyers to regain strength before the next breakout.

The price recovery above the daily Exponential Moving Averages (20, 50, 100, and 200) hints at a positive shift in market trend. Thus, with sustained buying, the SOL price could rise 18% before a major breakout from flag resistance. 

A successful flip above the overhead trendline will bolster buyers to drive an 11.5% jump to hit $210, followed by $240.

On the contrary, if the selling pressure at the flag’s upper boundary persists, the price could drive another reversal, invalidating the bullish breakout.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.