This week, the cryptocurrency market has witnessed a bullish surge as Donald Trump’s presidential inauguration approaches on Monday, January 20. Bitcoin has reclaimed the $100K mark, fueling recovery momentum across major altcoins, including Solana (SOL). Notably, Solana price has broken out of a two-month correction phase, signaling the potential for a stronger rally ahead.
By the press time, the SOL price trades at $221 with an intraday gain of 5%. Consequently, the asset’s market cap surged to $107 Billion and 24-hours trading volume at 5.11 Billion.
Key Highlights:
- Solana price breakout from flag pattern resistance signals the end of the 60-day correction trend.
- The coin price reclaiming its position above key daily exponential moving averages (20, 50, 100, and 200) bolsters the bullish market sentiment.
- SOL price recovery backed by renewed interest in crypto whales indicates potential for higher rally.
Solana Price Recovery Backed By Whale Buying
According to Lookonchain, a crypto whale recently spent 2.49M USDC to purchase 11,824 SOL tokens, valued at approximately $3.94M, and withdrew an additional 18,527 $SOL from Binance to bolster their holdings.
These tokens were subsequently deposited into Kamino, a liquidity optimization protocol. In a significant move, the whale deposited a total of 144,817 $SOL, worth $30.44M, into Kamino and used it as collateral to borrow $20M in stablecoins.
Whales are buying and going long $SOL!
A whale spent 2.49M $USDC to buy 11,824 $SOL, withdrew 18,527 $SOL($3.94M) from #Binance, and then deposited $SOL into #Kamino to borrow stablecoins.
This whale has deposited 144,817 $SOL($30.44M) into #Kamino and borrowed $20M… pic.twitter.com/VG1rXlP1nk
— Lookonchain (@lookonchain) January 17, 2025
This series of transactions indicates a bullish stance on Solana, suggesting the whale anticipates substantial price appreciation.
Flag Pattern Sets SOL Rally Past $300
In the last five days, the Solana price showed a sharp recovery from $169 to $217, projecting a growth of 28%. The bullish upswing backed by substantial volume and aforementioned whale buying indicates a sustained recovery.
Supporting the bullish thesis, the SOL price shows an upside breakout from the 60-day flag pattern correction and a potential crossover of 20-day EMA above the 50-day. If the daily candle closes above $212, the buyers could drive a 28% rally to hit $283.
In a prolonged rally, the Solana price prediction targets a $312 high.
On a contrary note, if post-breakout retest dives within the flag formation again, the bullish thesis will be at risk of invalidation.
Also Read: Bitcoin Soars to $102,000 as CPI Data Boosts Market Ahead of Trump’s Inauguration
