Solana (SOL) is experiencing a short-term correction, but strengthening network activity, whale accumulation, and institutional demand are keeping the broader bullish outlook intact.
According to the crypto analyst Ali Charts, since August 26, SOL has declined 8.31%, falling from $110.50 to approximately $100.40. Despite the weakness, several on-chain metrics indicate that investor interest and ecosystem adoption continue to expand.
Solana Network Growth Signals Rising Adoption
Solana’s network growth has remained particularly strong during the recent price decline. Over the past week, the blockchain has averaged around 9.5 million new addresses per day, highlighting sustained expansion in user participation and network activity.
Source: Ali Charts’ X Post
A consistent increase in new addresses can signal growing adoption and a broader base of market participants entering the ecosystem.
Network strength should be mentioned, as the network has remained active despite the fact that SOL has been sliding lower.
The fact that these developments are taking place independently of each other may indicate that the correction is happening due to technical rather than fundamental factors. If network growth is sustained at current levels, a recovery may become more justified.
There have also been more whales joining the network. There has been an addition of 1.58% to the number of whale wallets with 10,000+ SOL, adding up to 52 new whale wallets. This signals that larger whales are increasing their holdings, and this could mean a decrease in liquidity.
Source: Ali Charts’ X Post
Also Read: Solana Price Eyes $1,000 Rally as Whales Return With $8M SOL Purchase
ETF Inflows and Exchange Outflows Support Demand
Institutional interest is providing an additional dimension of backing to Solana’s market ecosystem. The total inflow to US spot SOL ETFs has already been for seven straight weeks in a row, demonstrating sustained demand from traditional investment channels.
Source: Ali Charts’ X Post
In the last week alone, these ETFs have seen more than 1.2 million SOL flow into them, which equates to around $120 million. Further inflows may help increase demand for SOL and provide more liquidity in the market.
On the other hand, the amount of SOL held on exchanges has fallen by 4.91%, with around 2.6 million SOL having been withdrawn from exchanges over the past week.
Source: Ali Charts’ X Post
Reduced exchange balances suggest that investors may be taking tokens out of circulation for longer-term holding.
Solana Price Eyes $150 as $103 Support Holds
Technically speaking, the $103 level still stands out as a critical support level. Around this level, some 39 million SOL was bought, thus forming an important level where buyers would try defending the price.
If SOL maintains an equilibrium in the range of $103 and resumes the bullish trend, focus may then turn to levels of resistance that can be found near $123 and $132.
Source: Ali Charts’ X Post
In both cases, about 20 million units of SOL were purchased, potentially creating selling pressure as previous buyers seek to exit.
A decisive break above both the levels of resistance will enhance the recovery pattern and can lead to the $150 mark.
Until then, the capacity of SOL to return to the $103 level is important in order to decide if the current decline turns out to be a correction or a base for further advances.
Also Read: Solana Price Holds Critical Support as $110 Breakout Remains Key
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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