Solana remains volatile, but confidence persists

Recently, although the price of Solana (#sol ) experienced a decline, the overall network still demonstrates strong appeal. Despite some on-chain activities slowing down, key support levels remain solid, indicating that while market panic has reduced retail participation, it has not diminished the long-term network value of SOL. As one of the robust Layer-1 blockchains, Solana has shown resilience even in the face of deteriorating risk appetite.

Fluctuations in network income and activity

#solana Network income reached its peak in January this year and gradually declined to a low point for the year. The trading activity of decentralized applications has slowed, erasing previous gains. Notably, this pullback is more a reflection of market panic than a sign of structural deterioration. During the same period, the number of weekly active addresses also decreased, indicating a reduction in retail participation and a spread of risk-averse sentiment. As volatility gradually narrows, market activity has begun to stabilize near recent lows, providing a buffer for the next market movement.

Whales are accumulating at lower levels

On December 18, Solana's price fell below $120, and several whale wallets began to actively accumulate SOL. Notably, wallet user G6gemN purchased about 41,000 SOL during the price decline, worth approximately $5 million. This was not a passive sell-off, but rather a typical strategic buy on dips.

Historical data shows that about eight months ago, the same wallet accumulated 24,528 SOL at an average buying price of approximately $122, later selling at $175, realizing a profit of about $1.28 million. The new round of accumulation follows a similar pattern: capital enters when prices are weak, rather than panic selling. The behavior of whales shows that even during high market panic, long-term confidence remains.

ETF inflows support the market

Meanwhile, the Solana spot ETF is also absorbing funds during the pullback. On December 18, the SOL spot ETF recorded a net inflow of about $11 million. This means that even as spot prices weaken, institutional products continue to absorb supply, offsetting some of the selling pressure. The flow of funds indicates that investors are still positioning during panic sell-offs, and institutional investors seem willing to increase holdings during heightened market volatility, with ETF trading activity reinforcing demand in the market during short-term weakness.

Support level is solid, momentum is gradually improving

Technically, as of the time of writing, Solana's trading price is close to $124, having previously dropped from $122 to $117, but the bulls successfully defended the support area, pushing the price back into the consolidation range of $122-$145. Prices hovering near the support level indicate that the market is digesting rather than continuing to decline.

The momentum indicators also show positive signals: MACD is forming a golden cross, and RSI has shown a bullish divergence, indicating that the selling pressure near recent lows has weakened. Solana remains within the established accumulation range, and momentum is improving, providing traders with a reference to observe whether the support can hold.

Market confidence and short-term volatility divergence

Solana's recent price movements highlight the difference between short-term market participation and long-term conviction. Although panic sentiment has put some pressure on market activity indicators, the accumulation of funds below the support level indicates that there are still investors firmly optimistic about Solana during uncertain times. Price fluctuations are merely short-term adjustments, and the long-term trend remains supported by network activity and institutional layout.

Overall, Solana has shown resilience in a volatile market, with whales accumulating at lower levels, ETF inflows, and solid support together indicating that the market still maintains confidence amid panic sentiment. For investors focused on long-term trends, this may be a window of opportunity to observe layout opportunities.