Solana News Today: Investors Accumulate Solana Amid Correction, Targeting $224 Support

Solana's recent price correction has sparked renewed interest among analysts, with key on-chain and technical indicators suggesting the pullback may stabilize near $224 before resuming an upward trajectory. Despite a 0.6% daily decline, the cryptocurrency remains up 12% over the past week and 16% monthly, indicating sustained momentum. Exchange net position data reveals a shift from net outflows to inflows, with 1.82 million SOL entering exchanges on October 5, signaling short-term selling pressure. However, this is counterbalanced by accumulation among mid-term holders, as Glassnode's HODL Waves data shows increased token retention across 1-week to 6-month timeframes, with the 1-month to 3-month cohort rising to 14.65% of the supply. This dynamic suggests a "healthy correction" driven by profit-taking rather than a bearish reversal.

Technical analysis reinforces the bullish case. Solana's price action within an ascending channel-a pattern defined by higher highs and higher lows-points to $224 as a critical support level. This level has historically cushioned previous pullbacks, and current conditions suggest it may serve as a floor for the current dip. The Relative Strength Index (RSI) further supports this view, showing a hidden bullish divergence: while the price formed a higher low between August and late September, the RSI recorded a lower low, a signal often associated with lingering uptrend strength. If Solana closes above $245, the next major resistance at $279 could be tested, with the upper trendline of the channel projecting a potential target near $422 should the rally persist.

Market sentiment appears to align with this technical setup. Short-term holders (1-week to 1-month) have increased their holdings to 13.2% of the supply, up from 9.55%, while mid-term holders (3-month to 6-month) show a modest rise to 12.29%. These figures indicate ongoing accumulation by investors who view the current pullback as a buying opportunity. Analysts caution, however, that a breakdown below $190 would invalidate the bullish scenario, emphasizing the importance of maintaining key support levels.

The broader market environment also favors Solana's resilience. Institutional interest in the blockchain remains strong, with network upgrades like the Alpenglow consensus upgrade-approved by 99.6% of validators in May 2025-enhancing scalability and reliability. These improvements position Solana as a preferred platform for decentralized finance (DeFi), non-fungible tokens (NFTs), and real-world asset (RWA) projects, driving on-chain activity and demand for the native token. Additionally, the impending approval of a spot Solana ETF by the SEC, expected in October, could catalyze further price appreciation by attracting institutional capital.

While short-term volatility is expected, the underlying fundamentals and technical indicators suggest Solana is well-positioned for a sustained rally. The interplay between selling pressure and accumulation, combined with a robust on-chain structure, underscores the cryptocurrency's ability to absorb market corrections without losing its long-term trajectory. As the market navigates this phase, investors are advised to monitor the $224 support level and the $245 breakout threshold, which could determine the next phase of Solana's price action.