Solana Price News: SOL On Track to Hit $50 as Inflation in the U.S. Accelerates

Solana (SOL) has dipped by 32% in the past 30 days, as the market experienced another strong risk-off move in the past couple of weeks.

The macroeconomic landscape in the United States is getting tricky, and investors are now expecting an interest rate hike ahead as inflation in the country is accelerating.

According to data from the Bureau of Labor Statistics, by the end of May, prices in the U.S. economy rose by 4.2% over the past 12 months. This percentage was in line with analysts’ estimates for the period, but it still meant a 40 basis points increase compared to a month ago.

As a result, the odds of a rate increase this year have increased to more than 64% as per data from the CME Group’s FedWatch Survey. Based on the data provided by this tool, the market expects a rate hike as soon as September, and risky assets are paying the price.

This means a significant shift from the market’s expectations for monetary policy decisions compared to the first couple of months of 2026, back when the baseline scenario was a couple of rate cuts throughout the year.

However, higher oil prices, rising geopolitical tensions, and President Donald Trump’s insistence on slapping key commercial allies with higher tariffs are putting upward pressure on the country’s inflation levels.

Meme Coin Trading Takes a Hit – Pump.fun Fees Get Slashed in Half

Solana has been the most heavily battered altcoin in the top 5, with a 48% year-to-date (YTD) loss, followed by Ethereum (ETH).

Trading volumes in the past 24 hours remain quite high as the token seems poised to revisit the $60 threshold. At $2.6 billion, these volumes account for 7% of SOL’s circulating market cap.

Looking at on-chain data, we can see that activity within the Solana ecosystem remains heavily depressed. DEX volumes have been on a downtrend since January this year, falling from $112 billion to $42 billion as of last month, meaning a 62.5% decline.

The public’s interest in meme coins has faded, and that’s bad news for Solana, as a significant percentage of its transaction volumes and application fees came from this segment.

Protocols like Pump.fun have felt the sting of this bear market, as its monthly fees have been slashed in half.

Although they picked up a bit last month due to the market’s strong bounce, they seem on track to end the month at around $54 million, meaning a 55% decline compared to January’s figure.

Solana Seems On Track to Hit $50 as Selling Pressure Continues

Heading to the charts, we outlined an interesting trading opportunity that involved shorting SOL after it broke below the $77 support. This trade could yield a 5.5x return if the token dips to our $50 target in the near term.

Thus far, this short position has yielded positive results. We saw some buying pressure at $60, but it does not seem strong enough to push the token back to $80. The downtrend has resumed in the past couple of days.

That said, the Relative Strength Index (RSI) just hit oversold, and that may set the stage for a technical bounce. If that’s the case, we could expect a retest of the $77 support from below.

Bears are still dominating the scene. Market conditions have shifted in their favor as interest rate expectations have turned hawkish. Hence, we don’t see any reason to be bullish unless you are a buy-and-hold investor with a long-term investment horizon.