Solana’s recent downturn may not be as concerning as it appears. Even with a slight Solana price dip (0.6% day-on-day), the network’s on-chain data and chart configuration indicate that this pause might merely be a reset before the next significant upward movement.
Currently priced at about $234, Solana has risen nearly 12% in the last week and 16% this month, indicating that while momentum has softened, it hasn’t diminished. The $224 range could serve as a support level where the current correction finds its footing before attempting to reach a new all-time high.
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Short-Term Selling Meets Steady Holder Accumulation
Profit taking has emerged once again. Solana’s exchange net position change, which measures the difference between coins entering and leaving centralized exchanges, reversed from –2.01 million SOL on October 3 to +1.82 million SOL on October 5.
A positive change signifies more tokens being transferred to exchanges, commonly indicating that traders are gearing up to sell.
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Nevertheless, this selling pressure is counterbalanced by the conviction of mid-term holders. Data from Glassnode’s HODL Waves, which track how long coins remain inactive, reveal a renewed accumulation among short- and mid-term holders.
- 1-week to 1-month holders: increased from 9.55% to 13.2% of supply
- 1-month to 3-month holders: increased from 12.6% to 14.65%
- 3-month to 6-month holders: increased from 11.82% to 12.29%
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In simple terms, while some Solana traders are taking profits, smaller and mid-term wallets continue to accumulate quietly. This combination of selling and buying often indicates a “healthy correction” instead of the beginning of a trend reversal. To better understand the correction floor, refer to the next section.
Solana Price Breakout Setup Targets $279 and Beyond
On the daily chart, Solana is trading within an ascending channel, characterized by progressively higher highs and lows. A significant price level of $224 has repeatedly provided support during pullbacks.
Should a sharper dip occur, it is likely to stabilize around this level, as many cohorts are still adding to their SOL holdings despite the apparent selling pressure on exchanges.
Additionally, the Relative Strength Index (RSI), a momentum indicator, indicates a hidden bullish divergence. From August to late September, while the Solana price reached a higher low, the RSI registered a lower low, typically suggesting that underlying strength persists in the uptrend.
If Solana’s price manages to close a daily candle above $245, it could pave the way toward $279, the next major resistance. According to the channel’s height, the potential breakout target from the upper trendline approximates $422 — a possible new cycle high if the momentum continues.
At this moment, the pullback appears more like a necessary pause rather than a sign of weakness, setting the stage for Solana’s next upward movement. However, a drop below $190 would invalidate the current bullish perspective.
