Solana's Whale Activity Surges 1.53% as DeFi TVL Rises 3.11%

Solana has exhibited three bullish indicators that could potentially drive the price of SOL higher. Firstly, there has been a notable increase in whale activity, with wallets holding over 10,000 SOL rising by 1.53%. This surge in large investor confidence coincides with SOL approaching a critical technical zone, suggesting a potential for a sustained breakout.

Secondly, Solana's recent price action has formed a cup-and-handle pattern, a bullish chart structure that indicates a potential continuation of upward momentum if the neckline resistance at $144.40 is breached. A strong close above this level could validate the pattern and expose higher price targets, while a failure to breach may result in another consolidation phase.

Thirdly, derivatives data show a negative funding rate, indicating that short traders are gaining dominance across perpetual futures markets. This imbalance, when paired with strong spot accumulation, sets the stage for a potential short squeeze, where short sellers are forced to cover their positions, driving the price higher.

Additionally, spot flows have remained supportive, with inflows totaling $96.27M slightly exceeding outflows on the 20th of April. This consistent accumulation reflects market participants positioning for long-term strength, further bolstering the bullish thesis.

Furthermore, Solana's DeFi activity has shown signs of recovery, with the network's Total Value Locked (TVL) rising by 3.11% in just 24 hours, pushing above $9.018 billion. This spike in protocol activity indicates that Solana is regaining market relevance, particularly among liquidity providers and decentralized app users, supporting the broader bullish case.

In conclusion, the combination of rising whale holdings, solid spot inflows, and revived DeFi activity positions Solana favorably for a potential breakout. While the negative funding rate may indicate hesitation, it could also serve as a contrarian indicator, flipping short pressure into momentum and propelling the price toward higher levels. However, bulls must first confirm control by reclaiming resistance and sustaining volume.