Solana Holds Above $157 as Bulls Regain Control After 6% Pullback

What to Know

• Solana dropped nearly 6% after reaching $163.65 but rebounded above $157.
• Institutional demand is growing with Canary Capital’s Solana ETF filing and WalletConnect’s integration.
• On-chain metrics show strength, including a 26% jump in transaction volume.

Solana Recovers After Sharp Drop From Local High

Solana (SOL) saw a steep 5.7% correction after touching a high of $163.65, retreating to as low as $154.42 before rebounding to trade above $157 on Tuesday morning. The sudden dip reflects short-term profit-taking and increased volatility, but the quick recovery indicates strong support and buyer confidence near key levels.

The bounce suggests that bulls are still in control, defending the $154 support zone and preventing further losses. The $157.30-$157.70 range has become the latest battleground, with bulls attempting to regain upside momentum.

Institutional Demand and Developer Adoption on the Rise

Despite the short-term dip, institutional and developer interest in the Solana ecosystem remains strong. Canary Capital recently filed for a spot Solana exchange-traded fund (ETF), a move seen as a major step toward greater legitimacy and access for institutional investors.

In parallel, WalletConnect launched its new native token on Solana, further cementing the network’s growing relevance in the broader Web3 developer ecosystem. These developments suggest long-term confidence in Solana as a credible Ethereum alternative.

On-Chain Data Shows Bullish Underpinning

Recent blockchain data indicates renewed momentum for Solana. Transaction volumes have surged by 26%, while the number of active daily users continues to climb—suggesting rising participation and steady demand for the network’s capabilities.

This increase in activity is notable given the current market uncertainty, positioning Solana as one of the more resilient networks amid fluctuating sentiment across the crypto landscape

Technical Breakdown: Key Support Holds, Resistance Forms

Solana traded in a wide intraday range of nearly $9.23 (5.64%), peaking at $163.65 before tumbling to $154.42. The bulk of the selloff occurred between 20:00 and 21:00 UTC, where the asset dropped roughly 4% in one hour.

However, buyers quickly stepped in near the $154.50 support level, creating a local bottom around $156.18 with volume confirmation at 07:51 UTC. The price has since stabilized and is currently consolidating just above $157.30, with immediate resistance at $157.70.

A short-term uptrend channel between $156.40 and $156.70 has transitioned into a consolidation zone, signaling that bulls are regaining control and absorbing selling pressure.

Outlook: Can Bulls Push Toward $165?

Market analysts maintain a cautiously optimistic outlook, suggesting that a sustained move above $157.70 could pave the way for a challenge of the $165 resistance level. A sustained move past this level would signal renewed bullish momentum and could attract fresh inflows from retail and institutional traders alike.

With a strong developer community, growing infrastructure, and rising adoption metrics, Solana continues to position itself as a dominant Layer 1 network. As long as key support levels hold, the path of least resistance remains to the upside.