Solana Correction or Short-Lived Dip: Experts Weigh In
Solana's recent correction has sparked concerns among investors, but experts believe it may be short-lived. The cryptocurrency plummeted from over $101 to under $96 after the CLARITY Act failed to advance in the US Senate.
However, analysts point out that Solana is holding a major support area around this level, which makes the zone significant. In fact, 72 million SOL tokens previously traded around this level, according to Ali Martinez.
In addition to this strong support level, other signals suggest that the correction may not be as severe as it seems. Institutional demand for Solana is strengthening through US spot SOL ETFs, which have recorded nine straight weeks of net inflows and more than $200 million in inflows over the past month.
Exchange supply continues to fall, with over 3 million SOL withdrawn from exchanges during this period. Network activity remains elevated as well, with Solana reaching a peak of 12 million new addresses on September 11.