Solana (SOL) is undergoing a short-term correction, yet strengthening network activity, whale accumulation, and institutional demand continue to support the broader bullish outlook, according to crypto analyst Ali Charts.

Since August 26, SOL has declined 8.31%, falling from $110.50 to approximately $100.40. Despite this weakness, several on-chain metrics indicate that investor interest and ecosystem adoption are still expanding. The pullback comes amid Solana's broader evolution into one of the most actively used smart-contract networks, competing with Ethereum for decentralized trading, payments, and application activity.

Solana Network Growth Signals Rising Adoption

Solana's network growth has remained particularly strong during the recent price decline. Over the past week, the blockchain has averaged around 9.5 million new addresses per day, highlighting sustained expansion in user participation and network activity, as Ali Charts noted on X.

A consistent increase in new addresses can signal growing adoption and a broader base of market participants entering the ecosystem. Notably, the network has remained active even as SOL's price has slid lower.

The fact that these developments are taking place independently of one another may indicate that the correction stems from technical rather than fundamental factors. If network growth is sustained at current levels, a recovery may become more justified.

More whales have also joined the network. The number of whale wallets holding 10,000+ SOL has grown by 1.58%, adding up to 52 new whale wallets, according to Ali Charts. This suggests larger holders are increasing their positions, which could reduce available liquidity.

Related: Solana Price Eyes $1,000 Rally as Whales Return With $8M SOL Purchase

ETF Inflows and Exchange Outflows Support Demand

Institutional interest is providing an additional layer of support to Solana's market ecosystem. US spot SOL ETFs have recorded inflows for seven straight weeks, demonstrating sustained demand from traditional investment channels, per Ali Charts. The arrival of spot SOL ETFs in the United States in 2025 marked a milestone for the asset, giving traditional investors regulated exposure that previously existed only for Bitcoin and Ethereum.

In the last week alone, these ETFs absorbed more than 1.2 million SOL, equivalent to roughly $120 million. Continued inflows could increase demand for SOL and add liquidity to the market.

At the same time, the amount of SOL held on exchanges has fallen by 4.91%, with approximately 2.6 million SOL withdrawn from exchanges over the past week, Ali Charts reported. Reduced exchange balances suggest investors may be moving tokens out of circulation for longer-term holding. When combined, sustained ETF inflows and shrinking exchange balances point to a market where demand-side structures are absorbing supply even as spot prices soften — a dynamic investors often monitor when gauging whether weakness is temporary.

Solana Price Eyes $150 as $103 Support Holds

From a technical standpoint, the $103 level stands out as critical support. Around this level, some 39 million SOL was bought, forming an important zone where buyers would likely attempt to defend the price, according to Ali Charts.

If SOL stabilizes around $103 and resumes its bullish trend, attention may turn to resistance levels near $123 and $132. At both of those levels, roughly 20 million SOL was purchased, which could create selling pressure as previous buyers look to exit their positions.

A decisive break above both resistance levels would strengthen the recovery pattern and could open the path toward the $150 mark. Until then, SOL's ability to hold the $103 level will be key in determining whether the current decline is a correction or a base for further advances. Watchers of the asset will also be tracking whether weekly ETF inflows and new-address growth persist, as those metrics have been central to the current bull case.

Related: Solana Price Holds Critical Support as $110 Breakout Remains Key

This article contains market analysis and price projections. These are not guarantees. Crypto markets are volatile. Always do your own research. Not financial advice.