Solana Shows Strength Amid $120 Billion Crypto Market Sell-Off

Solana’s latest price action killed any near-term shot at a run toward and through the $150 handle. SOL sold off hard in line with broader risk assets as macro uncertainty picked up.

Even with that drawdown, holder behavior suggests conviction hasn’t cracked. SOL investors largely kept a bullish bias, signaling confidence that goes beyond short-term price noise.

Solana Sees Relatively Strong Investor Interest

Solana spot ETFs printed a surprise $3.08 million in net inflows during a period of heavy market stress. Those flows came in as global equities were getting hit, and the broader crypto market saw more than $120 billion wiped off total capitalization. That divergence highlights SOL’s ability to pull capital even in risk-off conditions.

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The contrast with other crypto products was clear. Bitcoin ETFs saw $483 million in net outflows on Monday as investors de-risked. Most major assets followed the same exit trend. Solana, however, bucked the flow, reinforcing a bullish narrative that could support a rebound.

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On-chain data tells a similar story. New address growth on Solana stayed relatively steady despite negative sentiment across markets. The network added roughly 8.6 million new addresses on Monday, followed by 8.4 million on Tuesday — just a 2.38% drop.

That level of consistency suggests demand hasn’t materially rolled over. New address creation tends to reflect real usage and incoming interest rather than short-term speculation. Holding up through a drawdown points to underlying support that could help fuel a recovery once conditions improve.

Will SOL Price Heal Its Wounds?

SOL is trading around $127 at the time of writing, down 12.8% on the week. Price defended the $125 support zone, preventing a deeper flush. That area is shaping up as a key near-term floor, with buyers stepping in to absorb supply.

Relative strength still favors SOL versus other large caps. ETF inflows and steady network activity argue for a quicker bounce. A reclaim of $132 as support would open the door for a push through $136 and a partial retrace of recent losses.

The setup flips bearish if momentum stalls. A clean break below $125 would invalidate current support and shift sentiment lower. In that case, SOL could slide toward $119, extending the correction and sidelining the bullish case.