Solana was trading at nearly $102 on Tuesday, down more than 7% from its recent seven-month high of nearly $110. Recent price weakness has not stopped signs of stronger demand from building across the network.
According to Ali Martinez, Solana has seen an average of 9.5 million new addresses per day over the past week, a level of growth that the analyst considers an important adoption signal and has historically preceded major rallies.
Bullish factors
Large investors are also becoming more active. Wallets containing at least 10,000 SOL increased by 1.58% after 52 new whale wallets were added to the network. At the same time, US Spot Solana ETFs extended their streak of weekly net inflows to nine weeks. These funds attracted nearly $154 million in capital last week. Interestingly, Bitwise’s Solana Staking ETF, BSOL, recently surpassed $1 billion in assets under management in 10 months.
Meanwhile, exchange balances are moving in the opposite direction, as shown by the 4.91% drop in SOL held on exchanges after the withdrawal of around 2.6 million tokens over the past week. Martinez declared this $103 is an important level of support, as it is backed by 39 million SOL acquired there. The next hurdles are $123 and $132, each tied to around 20 million SOL of previous purchases.
Holding support and breaking these two levels could result in a move towards $150.
A similar sentiment was echoed by crypto investor Batman, who said that Solana could enter a stronger bullish phase after exiting a major accumulation structure. But he expects SOL to retest the $83-$85 zone and believes that a successful hold there could eventually push the asset towards $150 or higher.
Another market observer, Gerla, believes the asset could be gearing up for a much bigger move after breaking its downtrend. He reported the formation of higher lows, which suggests that the market may be entering a reaccumulation phase. If the structure remains intact, Gerla said Solana could target $300 or more as the next major expansion area.
Other key developments
Solana saw several major developments this week. This includes the conclusion of its first binding vote on chain governance, which was followed by a 25% increase in network speed, dropping slot times from 400ms to 300ms. Separately, Charles Schwab announced plans to add SOL to Schwab Crypto Direct.
Additionally, Solana’s RWA holder base also surpassed 350,000, while xStocksFi surpassed $500 million in assets under management across over 700 tokenized assets. Tokenized products on the network also reached a record supply of $50 million, and Solana became the leading network in terms of total x402 transaction volume.
Solana’s 7% Pullback Doesn’t Slow Demand: Here’s the $150 Setup appeared first on CryptoPotato.
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