Solana (SOL) Price Analysis: Ready For A Move-Up as DeFi TVL and Whale Buying Spree Emerge

The SOL/ETH currency pair traded within a tight range as liquidity woes challenge global markets, including crypto. With investors anticipating a series of interest rate cuts in the United States starting in September, Solana price may surge ahead of other cryptocurrencies, potentially reaching $200.

Solana price displayed resilience amid a challenging week for global markets, fueled by liquidity concerns and anticipation of a U.S. recession. Despite the broader market sell-off, Solana's unique value proposition within the cryptocurrency ecosystem could propel its price to $200.

Solana price found support at $140 this week, setting the stage for a rebound to $145 as the protocol's decentralized finance (DeFi) ecosystem saw a recovery in the total value locked (TVL). According to DeFi Llama, the value locked in smart contracts on the Solana network has climbed to $4.98 billion, up from the early August crash to $3.8 billion. An increase in this metric is typically viewed as a bullish signal for an asset, indicating reduced potential selling pressure as investors show confidence in the asset and commit their holdings to securing the protocol and earning rewards.

Meanwhile, ETH price quickly rallied toward $2,700, but a correction brought the price to $2,664 due to shrinking liquidity and a slow uptake of Ether ETFs. This sluggish movement in ETH price could soon be set for a breakout if whales continue to show their appetite for ETH. According to Santiment, holders of 1,000 to 10,000 ETH now account for 35.13% of the total supply, up from 34.77% on August 1. Those addresses with 10,000 to 100,000 ETH saw their holdings increase to 10% during the recent crash, compared to 9.67% during the same period.

Solana price technical analysis: Preparing for a move up

The SOL/USD price action is seen above critical support provided by the 200-day Exponential Moving Average (EMA) and the lower Bollinger band. A rebound toward the indicator's mid boundary is expected, which has a higher probability of boosting Solana price toward the $160 value area.

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