Solana falls 8%, network activity and whale demand remain strong

Price correction and on-chain activity

SOL has dropped 8.31% since August 26, slipping from $110.50 to about $100.40 based on analysis by Ali Charts. Despite this decline, metrics suggest ongoing interest among users and investors. On-chain data shows Solana’s usage remains robust, with an average of 9.5 million new addresses added daily over the past week.

Consistently rising new address numbers point to sustained ecosystem growth, indicating that more users and potential investors are engaging with the Solana network. The blockchain’s activity levels have held up even as the SOL token’s price declined, underscoring a separation between technical price action and underlying network fundamentals.

Current growth in new addresses suggests Solana’s adoption is broadening, potentially laying the foundation for future price recovery if these trends persist.

Analysts suggest that the current correction may be technical rather than based on weakening network health. If network growth continues at this pace, conditions may favor a rebound.

Whale accumulation and institutional flows

The number of whale wallets—those holding 10,000 SOL or more—has increased by 1.58%, with 52 new large accounts joining the network. This trend indicates significant holders are increasing their stakes, which could decrease available liquidity on exchanges.

Mini dictionary: Whale wallet, a term used to describe a blockchain wallet or address that holds a large quantity of a particular cryptocurrency, often indicating significant influence in the market due to the size of holdings.

Solana continues to attract strong institutional demand. US spot SOL exchange-traded funds (ETFs) have posted net inflows for seven consecutive weeks. Over the last seven days, these products have added more than 1.2 million SOL, equivalent to roughly $120 million.

Institutional participation remains firm in the Solana ecosystem, with spot ETF inflows highlighting ongoing traditional investment activity.

Withdrawing SOL from exchanges has also accelerated: exchange-held balances dropped 4.91% last week, amounting to about 2.6 million SOL moved off trading platforms. This suggests more tokens are being held for the long term.

Key support and resistance levels

Technically, the $103 price area emerges as an important support level for SOL. Around this threshold, market participants acquired approximately 39 million SOL, establishing a key price region that buyers may defend.

If SOL stabilizes near $103 and regains upward momentum, traders may look to resistance areas at $123 and $132. Previous buying activity around these levels—about 20 million SOL at each—may create potential selling pressure.

A breakout above resistance could strengthen Solana’s case for a recovery toward the $150 mark. Until then, the ability of SOL to hold $103 remains key to assessing whether the current decline is a temporary correction or a base for further gains.