Solana Recovers After Pullback as Institutional Interest and On-Chain Activity Surge

Solana (SOL) experienced a sharp correction after hitting a high of $163.65, falling nearly 6% before rebounding to trade above $157 on Tuesday. The drop highlights ongoing volatility as bulls and bears battle around key resistance zones.

Despite the dip, institutional confidence in Solana remains strong. Canary Capital recently filed for a spot Solana ETF, signaling growing recognition from traditional finance. Additionally, WalletConnect’s token launch on the Solana network highlights increasing developer adoption and ecosystem growth.

On-chain metrics reinforce this bullish narrative. Solana has seen a rise in daily active addresses, and transaction volumes jumped by 26%, reflecting heightened user activity and network utilization.

Technical indicators show SOL fluctuated in a $9.23 range, with heavy selling around the $163.50 mark driving a quick 4% drop during the 20:00–21:00 trading window. A key support level formed at $154.50, triggering a recovery that brought prices back above $157.30. Notably, a local bottom was confirmed near $156.18, supported by significant volume spikes around 07:51.

The short-term trend indicates consolidation above $156.50, suggesting stabilization after the correction. Immediate resistance lies at $157.70, and analysts are watching $165 as the next major hurdle. Market sentiment remains cautiously optimistic, backed by a robust developer base and Solana’s positioning as a high-performance Ethereum alternative.

With technical resilience and increasing institutional backing, Solana continues to attract attention as a top-tier blockchain asset. As price consolidation steadies, the market looks to upcoming catalysts that could trigger another leg up in SOL’s price trajectory.