Solana Corrects Below $100 But Analysts See Bullish Signs

Solana's price has dropped below $100 after reports of the CLARITY Act failing to advance in the US Senate, but certain indicators suggest this correction might be short-lived.

The crypto asset had been trading above $101 before plummeting to under $96 and then recovering slightly. According to Ali Martinez, 72 million SOL previously traded around this level, making it a significant support zone.

Institutional demand is increasing through US spot SOL ETFs, which have recorded nine straight weeks of net inflows with over $200 million entering these investment vehicles in the past month alone. This includes almost $28 million in August.

Exchange supply continues to fall as more than 3 million SOL have been withdrawn from exchanges during this period. Additionally, Solana's network activity remains elevated, adding roughly 10.8 million new addresses each day.