Solana is holding a major support area even after its latest correction. After reports that the CLARITY Act failed to advance in the US Senate, the crypto asset took a plunge from over $101 to under $96 before a minor recovery.
Ali Martinez found that 72 million SOL previously traded around this level, which makes the zone significant.
Other Signals
Institutional demand is also strengthening through US spot SOL ETFs. It has now recorded nine straight weeks of net inflows, and more than $200 million entered these investment vehicles over the past month. Almost $28 million in inflows were recorded in August alone.
At the same time, exchange supply continues to fall as more than 3 million SOL have been withdrawn from exchanges during the same period.
Network activity remains elevated as well. Solana reached a peak of 12 million new addresses on September 11, and it is still adding roughly 10.8 million new addresses each day. According to Martinez, these factors – the strong support level, ETF demand, lower exchange supply, and continued network growth – indicate that the current correction could be short-lived.
Solana has been seeing growing activity from tokenized stocks, especially after traditional markets close. CryptoRus recently said that 63% of the network’s tokenized-equity activity happens after Wall Street closes. There are now more than 727,000 holders. Additionally, Solana’s TVL rose more than 18%, from around $4.82 billion to roughly $5.7 billion.
Corporate treasuries are building exposure too. DeFi Development Corp. now holds about 2.39 million Solana tokens and SOL equivalents after adding 55,491 since August 27. It has also established a $300 million at-the-market program for its CHAD perpetual preferred stock.
Most of the proceeds will be used to purchase more of the crypto asset. CHAD carries an initial annual dividend rate of 13%. DeFi Development Corp. recently restarted regular purchases of SOL and now has the second-largest Solana treasury, behind Forward Industries.
Volatility Incoming?
Despite the recent choppy price, SOL is almost 30% up over the past month. Market watcher Ella believes that a move back above $100 would take some pressure off the crypto asset. The focus should be on reclaiming $102.5.
However, if $95 breaks, the price could fall toward $93-$94. With the Fed decision still ahead, Ella expects volatility to pick up.
The post Solana (SOL) Correction or Short-Lived Dip? Here’s Why Bulls Aren’t Giving Up appeared first on CryptoPotato.
Source: https://cryptopotato.com/solana-sol-correction-or-short-lived-dip-heres-why-bulls-arent-giving-up/
