Solana (SOL) experienced a sharp decline after reaching a high of $163.65, dropping nearly 6% before recovering to trade above $157 by early Tuesday. This price movement showcases the increased volatility in the market as bulls and bears compete around crucial psychological thresholds.

Despite the setback, institutional interest in SOL remains robust. Recent developments, such as Canary Capital’s filing for a spot Solana ETF and the launch of WalletConnect’s token, highlight the increasing adoption of the ecosystem. Supporting this trend, on-chain metrics reveal a 26% rise in transaction volumes along with growing daily active addresses.

Key Highlights:

• SOL fell 5.7% post reaching its $163.65 peak but rebounded to stabilize above $157 during early trading.
• The interest from institutional investors and developers is evident.
• On-chain data indicates positive activity, reinforcing a favorable outlook for Solana.

Analysts are cautiously optimistic, identifying $165 as a key resistance level to monitor going forward, while longer-term projections suggest a positive trajectory supported by an expanding developer ecosystem and enhanced market traction.