Solana Whales Accumulate as Price Nears Breakout

Solana's latest price was $137.59, down 1.472% in the last 24 hours. The cryptocurrency has seen a surge in whale activity, with wallets holding over 10,000 SOL increasing by 1.53%, indicating renewed confidence from large investors. This activity is significant as SOL approaches a technically sensitive zone, which could potentially propel it beyond its consolidation phase and ignite a sustained breakout.

Solana's recent breakout above a descending trendline has formed a textbook cup-and-handle pattern. This bullish structure, currently nearing its neckline resistance, points to a potential continuation of upward momentum if broken. The handle is developing within a tight range, and the price currently hovers near $139, keeping bulls within reach of a key breakout trigger. A strong close above the neckline could validate this setup and expose higher levels, while failure to breach may result in another consolidation phase.

While price action and whale behavior appear constructive, derivatives data tell a different story. The OI-Weighted Funding Rate dropped to -0.0116% on April 20, indicating that short traders are gaining dominance across perpetual futures markets. Such negative funding often stems from disbelief in the rally or attempts to fade recent gains. However, when paired with strong spot accumulation, this imbalance can set the stage for a short squeeze.

Spot flows have remained supportive, with spot inflows totaling $96.27 million, slightly exceeding $88.36 million in outflows on April 20. Although the net difference appears modest, consistent inflows reflect persistent accumulation by market participants. This flow, when aligned with whale wallet growth and structural chart setups, adds further weight to the bullish thesis. Unlike derivatives markets, where sentiment remains cautious, spot participants appear to be positioning for long-term strength.

Solana’s DeFi activity has bolstered the positive outlook. The network’s Total Value Locked (TVL) rose 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. As capital rotates into blockchain ecosystems, demonstrating real usage, Solana’s strong DeFi rebound supports the broader bullish case.

Putting it all together—rising whale holdings, solid spot inflows, and revived DeFi activity—Solana’s structure appears increasingly favorable. While Funding Rates still flagged hesitation, they may serve as the perfect contrarian indicator. A clean breakout could flip short pressure into momentum, propelling price toward higher levels. However, bulls must first confirm control by reclaiming resistance and sustaining volume.

Solana's price has been one of the few highlights in a generally choppy crypto market over the past week. While most large-cap assets were stuck in a consolidation range in the last seven-day period, the SOL token enjoyed a good amount of upward bullish momentum. The price of SOL kicked off the weekend with a strong rally toward the $140 level, albeit facing some degree of resistance around this level. However, the latest on-chain data suggests that the Solana price might have become wedged between two crucial levels.

In a recent post on the X platform, prominent crypto analyst Ali Martinez shared an on-chain insight into the current Solana price setup and its potential future trajectory. The online pundit referenced the “UTXO Realized Price Distribution” (URPD) indicator, which monitors the amount of a particular cryptocurrency that was acquired at a given level. The ability of a price level to serve as an on-chain support or resistance zone depends on the number of investors (and coins) with their cost basis around this level. The cost basis of an investor refers to the spot price at which they acquired their tokens or coins.

Typically, a price region (beneath the current price) where several investors bought their tokens will likely act as a support level. This is because investors are likely to double down on their position when an asset’s value falls to their cost basis; this buying activity helps keep the token’s price afloat. On the other hand, price levels above the current price with significant buying activity would serve as major supply or resistance barriers. The rationale behind this is that investors tend to sell off their assets when the token’s price rises back to their cost basis, putting downward pressure on price and preventing further upward growth.

According to data from Glassnode, the most important support for the Solana price lies around $129, while the major resistance sits at around $144. As Martinez explained, a breakout (above $144) or breakdown (below $129) could determine the fate of the SOL token over the next few weeks. As observed in the highlighted chart, the next significant support for the Solana price sits around the $10 level. Meanwhile, there is no significant resistance for the altcoin till around the $170 price level based on the URPD indicator.