Key Insights:
Solana holds firm above $166 with strong support between $161 and $166, forming a critical zone for bullish price action.
A whale withdrawal of $12 million worth of SOL to a DeFi platform signals growing investor confidence in Solana-based self-custody.
Phantom’s acquisition of Solsniper expands DeFi capabilities, potentially increasing activity across the Solana network.
Solana began August trading above a key support zone around $166, maintaining this level over recent weeks. Market analysts are closely tracking the consolidation pattern as it coincides with rising interest in decentralized finance on the Solana network.
Mary Emerald, a well-followed crypto analyst, pointed to a bullish continuation setup on Solana’s daily chart. She noted a Golden Cross formation and a retracement toward Fibonacci level 0.5 at $166.38, aligning with both the 200-day EMA and a failed trendline.
Support Between $161 and $166 Draws Attention
The current price range between $161 and $166 has emerged as a significant zone of buyer support. Emerald highlighted this range as crucial for confirming bullish momentum. If the price holds this area, Solana could advance toward $206 and potentially reach the projected level of $255.93.
Recent market action supports this forecast. Solana previously rallied more than 56%, and the present structure suggests a similar rally could follow, potentially adding 61% in value.
Indicators Show Mixed Momentum
Despite the bullish setup, technical indicators remain cautious. The MACD histogram continues to reflect negative momentum. Resistance levels at $189.49 and $206.13 remain critical. A decisive break above these points would support a confirmed upward trend, while a drop below $158 could undermine the bullish scenario.
Solana’s broader ecosystem has also shown strength. Phantom, a major wallet provider on Solana, has acquired Solsniper, a memecoin and analytics platform. This move is expected to improve infrastructure for retail and DeFi users, potentially increasing user activity and on-chain volume.
Whale Activity and Exchange Outflows Build Confidence
Lookonchain data indicated a whale withdrew 71,000 SOL, valued at approximately $12 million, from Binance to Kamino, a DeFi yield platform. Additionally, Coinglass reported a net exchange outflow of over $21 million on August 5.
These withdrawals reflect rising investor preference for self-custody and long-term holding, reducing sell-side pressure and supporting accumulation behavior.
Solana continues to trade within a bullish technical structure. Support levels at $158 and $166 remain intact, and a breakout above $189 could confirm further upward movement toward $255.
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