Solana Recovers Above $157 After Sharp Pullback, Supported by Growing Institutional Interest
Solana (SOL) experienced a brief but steep correction after hitting a local high of $163.65, dropping nearly 6% before finding strong support at the $154 level. By Tuesday morning, the token had rebounded to above $157, as bulls stepped back in and market sentiment began to stabilize.
The pullback follows a period of heightened volatility, with traders reacting to key resistance near $163.50. Despite the sell-off, broader interest in the Solana ecosystem remains strong. Institutional momentum continues to build, highlighted by Canary Capital’s recent filing for a spot Solana ETF. Additionally, WalletConnect’s decision to launch its token on Solana further signals developer confidence in the network’s scalability and user base.
On-chain metrics confirm sustained growth, with daily active addresses climbing and transaction volumes surging by 26% over the past week. Analysts suggest the recent dip is more of a healthy retracement than a trend reversal.
Technical Outlook
- Trading Range: SOL moved within a $9.23 band (5.64%), peaking at $163.65 before hitting a low of $154.42.
- Sell-Off Zone: Heavy resistance at $163.50 led to a swift 4% drop during the 20:00–21:00 UTC window.
- Support & Recovery: A firm support base formed around $154.50, sparking a recovery to $157.30+.
- Volume Signals: A strong volume spike near 07:51 confirmed a local bottom around $156.18.
- Short-Term Channel: A bullish channel emerged between $156.40–$156.70, now transitioning into broader consolidation above $156.50.
- Resistance Levels: Immediate resistance is at $157.70, with $165 eyed as the next breakout zone.
Market structure suggests buyer strength at current levels, with institutional activity and ecosystem developments providing a supportive backdrop. While short-term resistance may cap immediate upside, sentiment remains constructive as Solana continues to solidify its position as a leading Layer 1 alternative.
