Solana Price Prediction: SEC’s Support Should Keep SOL Above $100

Solana (SOL) has gone up by nearly 3% in the past 24 hours, following a widely expected interest rate hike by the Federal Reserve yesterday.

Hawkish comments from the head of the U.S. central bank, Kevin Warsh, initially pushed down the price of SOL to around $96, but bulls stepped in to scoop up the token. Thus far, they have managed to push it back to the $100 level during the Asian session today.

Warsh’s comments emphasized the Fed’s independence in the wake of rising pressures from the White House and demonstrated the institution’s commitment to keep inflation in check.

In August, the U.S.’s annualized inflation stood at 3.4% or 140 basis points above the Fed’s target.

“We must be confident that underlying inflation is moving to our objective clearly and at sufficient speed,” Warsh commented. He added: “Today, the FOMC decided that this standard has not been satisfied.”

This was the first rate hike since 2023 and could mark the beginning of a series of upward adjustments to the federal funds rate in the next few months. Analysts are currently assigning a 41% chance to another rate hike taking place in December this year.

SEC Chairman Pledges to Back the Crypto Sector After Failed Clarity Act Vote

In addition to the Fed’s decision, the Clarity Act was shelved by Congress this week. Even though this implies a major blow to the industry’s push to get a clearer regulatory framework in the United States, comments from the head of the U.S. Securities and Exchange Commission (SEC) were somewhat reassuring.

In a tweet published by Paul Atkins on Wednesday, the head of the financial watchdog commented that the SEC “will act decisively within the SEC’s statutory authority to deliver certainty for American investors and for the entrepreneurs shaping our technological future.”

This is bullish for the crypto market, and Solana (SOL) as the home of several top DeFi protocols, as it means that regulators are still working to create a supportive environment for the sector’s growth.

Now that the market has more visibility into how both monetary policy and the regulatory landscape could evolve in the next few months, investors’ uncertainty should ease, potentially paving the way for the continuation of the rally that started in August.

Solana Needs to Break Past $105 to Kickstart Its Next Leg Up

Heading to the daily chart, bulls seem to be doing their best to defend the $100 threshold today. Keeping SOL above this mark is critical to prevent a much stronger drop to $90.

That said, higher rates mean a stronger dollar. Hence, if the market’s bullish narrative was truly weakened by this week’s development, we could see a strong rejection of a move above $100 and a subsequent retest of the 200-day exponential moving average (EMA) in the near term.

Momentum continues to be on the side of bulls, as the Relative Strength Index (RSI) currently sits at 53. A bullish flag pattern is still in play for Solana as well, even though its downward slope indicates that sellers are outpacing buyers during this latest phase of consolidation.

The price needs to break above $105 at least to get SOL moving toward our $120 near-term target. As long as the 200-day EMA holds, the baseline scenario for this token outlook is still bullish.