The price of Solana has recently descended below the 130 dollar support level, marking a concerning milestone not seen since earlier this month. According to the latest reports from Glassnode, this decline has been exploited by large investors through aggressive whale accumulation that suggests solid institutional confidence in the network. This strategic behavior, combined with positive on-chain metrics, points towards a possible market recovery.
The market has witnessed a drastic reduction in available supply across centralized exchange platforms during the last few weeks of this January. Currently, the balance of assets in these wallets has fallen to levels not seen in approximately two years of trading, reaching barely twenty-six million units. This programmed scarcity significantly reduces immediate selling pressure on the asset’s overall market.
Addresses holding between one thousand and ten thousand tokens have increased their positions exponentially in recent days. These entities now control nearly nine percent of the total circulating supply of the network effectively. Simultaneously, long-term investors have raised their buying pressure, reaching fifteen-month highs in net accumulation of digital assets across the globe.
Solid fundamentals support ecosystem resilience in the face of market volatility
Network activity shows signs of a vigorous recovery following the generalized pullback seen across the entire market recently. The number of daily active addresses grew by fifty percent, managing to surpass five million weekly active users on the network currently. This increase reflects a genuine commitment from participants towards technology and the various applications on the platform.
Furthermore, the network continues to attract significant and constant institutional capital flows without interruption from several global investment funds. The adoption of staking services has also contributed to strengthen internal security through the adoption of advanced validation services worldwide. Thus, the ecosystem maintains its technological competitiveness against other prominent network protocols in the industry.
Moreover, there is a sustained increase in the use of efficient scalability solutions within the local operating environment. During Tuesday’s session, the network processed approximately seventy-eight million daily transactions on chain, surpassing previous records. This transactional dynamism validates the robustness of the technical architecture, allowing high data volumes to be processed without delays or bottlenecks.
Could stablecoin liquidity drive a new parabolic rally for the asset?
The supply of stablecoins on the network has reached an all-time high of fifteen billion dollars recently. According to analysts from Milk Road, this massive inflow represents new liquidity available for trading and settlement of financial assets online. Higher capital availability is usually the necessary precursor to generate a high-magnitude bullish impulse in the short term period.
Despite temporary price weakness, the growing use of decentralized applications supports the current bullish thesis for all investors. The coming days will be crucial to confirm if this technical support turns into a springboard toward new annual highs for the digital asset soon. Investors remain attentive to the consolidation of these fundamental indicators before executing any further market operations.
