invezz.com 
Solana rose nearly 6% over the past 24 hours, recovering from a sharp dip following the Federal Reserve’s first interest-rate increase since 2023.
$SOL initially fell to approximately $96 after Fed Chair Kevin Warsh delivered hawkish comments emphasizing the central bank’s commitment to controlling inflation.
Buyers subsequently entered the market and pushed the token back above $100 within 48 hours.
Solana continues to gain adoption
$SOL is up by nearly 6% and is now trading at $106 on Friday. The rally comes as Solana’s adoption rate continues to soar.
On Thursday, Galaxy, the Nasdaq-listed firm, with over $7B in assets under management and stake, announced that it now curates two lending vaults on Kamino, one in USDC and one in USDT.
Several developments have also added to activity around Solana, with Injective’s INJ token going live on the network and Project Harmonia linking Allfunds’ distribution network to tokenised funds built on Solana.
Solana also received support from comments by SEC Chair Paul Atkins following Congress’ failure to advance the CLARITY Act.
The stalled bill represented a setback for efforts to establish a comprehensive US digital-asset regulatory framework.
However, Atkins said the SEC would act within its existing authority to provide certainty for investors and technology entrepreneurs.
The pledge is potentially positive for Solana because its blockchain hosts a large ecosystem of decentralized finance protocols, trading platforms and tokenized assets.
Greater regulatory clarity could encourage developers and financial institutions to expand their use of the network, although the SEC’s actions will determine the practical effect of Atkins’ remarks.
Earlier this week, the Federal Reserve raised interest rates as it continued to confront elevated inflation, which stood at an annual rate of 3.4% in August, well above the central bank’s 2% target.
Warsh said policymakers were not yet confident that underlying inflation was returning to the target clearly or quickly enough.
Although higher borrowing costs generally pressure cryptocurrencies and other risk assets, investors had widely anticipated the increase. This helped limit Solana’s initial decline and supported the subsequent rebound.
Markets currently assign a 41% probability to another rate increase in December. Additional tightening could strengthen the US dollar and reduce liquidity available for speculative assets.
Solana technical forecast: $SOL must clear $110 to target $130
$SOL is attempting to establish strong support at the $100 psychological level. Sustained trading above this threshold would reduce the immediate risk of a deeper correction toward $90.
Technical momentum remains slightly bullish, with the Relative Strength Index at 57. A reading above 50 indicates buyers retain a modest advantage, although it does not yet signal strong upward momentum.
Solana’s daily chart also shows a potential bull flag. However, the pattern’s downward slope reflects persistent selling pressure during the latest consolidation phase.
A decisive breakout above $110 would strengthen the bullish setup and could send $SOL toward the near-term target of $130.
Conversely, rejection of the $105 resistance level could trigger a retest of the 200-day exponential moving average.
A breakdown beneath that indicator would weaken the bullish outlook and increase the probability of a move toward $90.
