Solana holds a major support zone even after its latest correction. After the US Senate reported that the CLARITY Act had not progressed, the crypto asset plunged from over $101 to below $96 before a slight recovery.
Ali Martinez found that 72 million SOL previously traded around this level, making the area significant.
Other signals
Institutional demand is also strengthening thanks to American SOL spot ETFs. It has now recorded nine consecutive weeks of net inflows, and more than $200 million has flowed into these investment vehicles in the past month. Nearly $28 million in entries were recorded in August alone.
At the same time, the foreign exchange supply continues to decrease as more than 3 million SOL were withdrawn from exchanges during the same period.
Network activity also remains high. Solana reached a peak of 12 million new addresses on September 11 and continues to add approximately 10.8 million new addresses each day. According to Martinez, these factors – the high support level, the demand for ETFs, the decline in FX supply and the continued growth of the network – indicate that the current correction could be short-lived.
Solana has seen increasing activity from tokenized stocks, especially after traditional markets closed. CryptoRus recently said that 63% of the network’s tokenized stock activity occurs after Wall Street closes. There are now more than 727,000 holders. Additionally, Solana’s TVL increased by over 18%, from approximately $4.82 billion to approximately $5.7 billion.
Corporate treasuries also increase their visibility. DeFi Development Corp. now holds approximately 2.39 million Solana tokens and SOL equivalents after adding 55,491 since August 27. It also established a $300 million market program for its CHAD perpetual preferred stock.
Most of the profits will be used to purchase more crypto assets. CHAD carries an initial annual dividend rate of 13%. DeFi Development Corp. recently resumed regular purchases of SOL and now has the second largest Solana treasury, behind Forward Industries.
Incoming volatility?
Despite the recent volatile price, SOL is up almost 30% over the past month. Market observer Ella believes that a return above $100 would alleviate some pressure on the crypto asset. The focus should be on recovering $102.5.
However, if $95 breaks, the price could drop to between $93 and $94. While the Fed’s decision has not yet been made, Ella expects volatility to pick up.
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