Solana (SOL) is attempting to stabilize near $95 after falling sharply during the broader cryptocurrency market correction. The token dropped from around $101.36 to $95.84 after the U.S. Senate failed to advance the CLARITY Act. U.S. spot Solana ETFs have recorded nine straight weeks of net inflows, with more than $200 million entering over the past month, and Solana has activated a major network upgrade that increased the amount of data developers can include in a single transaction. Together the fund flows, declining exchange balances and improved transaction capacity provide a potentially supportive backdrop as the token tests a key on-chain support zone.

Solana Price Tests Crucial Support Zone

Solana's decline followed reports that the CLARITY Act stalled in the U.S. Senate after failing a crucial 60-vote cloture test. The bill is designed to establish a regulatory framework for digital asset markets in the United States. According to analyst Ali Martinez, on-chain data shows that approximately 72 million SOL were previously traded around the current price level, marking a significant support zone for the altcoin.

Exchange balances offer another potentially supportive indicator. More than 3 million SOL have been withdrawn from exchanges over the past month, suggesting that more investors are willing to hold SOL in cold storage — a shift that could lead to less selling pressure.

Network activity has also remained strong. Solana's network growth stays elevated, with the blockchain recording roughly 10.8 million new addresses per day. The network reached a peak of 12 million new SOL addresses on September 11, showing continued activity despite the recent market correction.

Technical analysts are watching SOL's chart structure as well. Analyst Trader Tardigrade said SOL has once again touched the lower boundary of its bull flag pattern on the daily chart, a pattern chartists describe as a consolidation that follows a strong upward move. According to the analyst, any breakout from this pattern could trigger a rally to $140.

Spot Solana ETFs Log Nine Straight Weeks of Inflows

Demand for U.S. spot Solana ETFs has continued to rise, with the Solana-focused instruments now posting nine consecutive weeks of net inflows. Spot ETFs allow investors to gain exposure to SOL without directly holding the token, and their flows are widely tracked as a gauge of institutional demand. Over the past month alone, more than $200 million has flowed into spot SOL ETFs.

The latest net inflows reached $11.0 million, bringing the 30-day total to $.1 million and tracking cumulative net inflows to $1.37 billion, according to data from AskClash. SOL ETF demand has remained resilient despite broader market caution ahead of the Federal Reserve's decision. With the Fed's decision pending, the next weekly ETF flow readings and the Senate's next move on the CLARITY Act are among the near-term markers investors are watching alongside Solana's on-chain data.

Solana Triples Transaction Data Capacity

Solana has more than tripled the amount of data that can be included in a single transaction, giving developers additional capacity for complex trades, company-wallet approvals and privacy applications, according to official data. The network's new Transaction V1 format went live on Tuesday, Sept. 15.

The upgrade increases the maximum data capacity of a single transaction to 4,096 bytes from 1,232 bytes. The change addresses a structural limitation on the network while narrowing the gap with competitors such as Ethereum. With the higher limit, Solana is expanding the amount of information that can be included in each transaction, and the additional capacity can accommodate the instructions, signatures and other data required to execute transactions.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and technical targets or ETF flows do not guarantee future price performance.

Source: The Market Periodical