Solana (SOL) price has recently dropped below the $130 mark, a level not seen since January 2. However, onchain data indicates that a strong recovery could be on the horizon for this top-10 altcoin.
Key Takeaways
- •SOL experienced a dip below $130 amidst a market-wide pullback, but whale investors continue to accumulate tokens, signaling confidence.
- •The supply of SOL on exchanges has fallen to two-year lows, suggesting a reduction in potential sell pressure.
- •An increase in network activity on the Solana blockchain is boosting onchain demand for SOL.
SOL's Accumulation Trend Strengthens
Solana whales appear to remain confident in the prospects of a further rally. They have been utilizing the recent pullback to approximately $120, observed at the end of 2025, to accumulate more tokens. Data from Glassnode reveals a notable increase in whale addresses holding between 1,000 and 10,000 tokens since late November 2025. These entities now collectively hold around 48 million SOL, which represents approximately 9% of the total circulating supply. Furthermore, addresses holding at least 100,000 tokens have increased their holdings from 347 million tokens on November 17, 2025, to 362 million tokens, accounting for 64% of the total supply.
Additional data suggests that the market has been in an accumulation phase, with increased buying pressure from long-term holders (LTHs). The Hodler net position change has been positive since the final week of December 2025, reaching a 15-month high of 3.85 million SOL on Sunday. This indicates that holders are actively accumulating SOL in anticipation of further price increases. The last time LTH accumulation reached similar levels was in October 2024, which was followed by a 95% rally in SOL's price.
SOL Supply on Exchanges at Two-Year Lows
There has been a substantial decrease in the SOL supply held on exchanges since late November 2025, as indicated by Glassnode data. The SOL balance on exchanges dropped by 5 million to 26,058,693 on January 14, reaching levels not seen since January 12, 2023. A reduction in the balance of tokens on exchanges typically suggests a decreased intention to sell by holders, which reinforces the potential for upside price movement.
Solana Network Activity Shows Signs of Recovery
Robust onchain metrics, which are indicative of a vibrant and active ecosystem, are supporting the potential for SOL to stage a parabolic rally in the coming weeks. Daily active addresses on the Solana network have increased by 51% over the past seven days, reaching a six-month high of over 5 million this week, according to data from Nansen. This surge reflects strong user engagement and growing demand for Solana's decentralized applications and staking services. Concurrently, daily average transactions have climbed by 20% during the same period, reaching 78 million on Tuesday, levels last observed in mid-August 2025. This trend underscores the network's scalability and increasing adoption.
Meanwhile, Solana's stablecoin supply has experienced significant growth, increasing by over 15% in the last seven days and reaching an all-time high of $15 billion, according to data from Token Terminal. This surge in stablecoin supply suggests potential shifts in crypto liquidity dynamics, reinforcing the stability of Solana's ecosystem and attracting increased investor focus. The increase in Solana's stablecoin supply is interpreted as new liquidity entering the network. In practical terms, a greater amount of stablecoins on Solana means more capital is available for trading, settlement, and application activity. An increasing stablecoin supply is generally seen as a signal of surging onchain demand, which in turn boosts network utility, fees, and adoption, thereby supporting a bullish outlook for SOL's price.