Solana (SOL) climbed nearly 3% in the past 24 hours to reclaim the $100 level, following a Federal Reserve interest rate hike and reassuring comments from the U.S. Securities and Exchange Commission (SEC). The price recovered from a dip to around $96 after hawkish remarks by Federal Reserve Chair Kevin Warsh initially weighed on the market.
Warsh emphasized the Fed's independence and commitment to controlling inflation, noting that annualized inflation stood at 3.4% in August, which is 140 basis points above the central bank's target. He stated that the Fed must be confident inflation is moving toward its objective at a sufficient speed. This marked the first rate hike since 2023, with analysts currently assigning a 41% chance to another increase in December.
Beyond monetary policy, regulatory developments also influenced investor sentiment. Congress shelved the Clarity Act this week, a move that dealt a blow to efforts to establish a clearer regulatory framework in the United States. However, SEC Chair Paul Atkins offered a counterpoint in a tweet on Wednesday, asserting that the agency will act decisively within its statutory authority to provide certainty for American investors and entrepreneurs.
This stance from the SEC is viewed as supportive for the crypto sector, particularly for Solana, which hosts several top DeFi protocols. With more visibility into both monetary policy and the regulatory environment, investor uncertainty may ease, potentially allowing the rally that began in August to continue.
On the technical side, bulls are currently defending the $100 threshold on the daily chart. Holding this level is critical to prevent a deeper drop toward $90. Higher interest rates typically correlate with a stronger dollar, which could pose headwinds for the asset. If the bullish narrative weakens further, a rejection above $100 could lead to a retest of the 200-day exponential moving average (EMA).
Momentum indicators remain mixed but lean positive. The Relative Strength Index (RSI) sits at 53, and a bullish flag pattern remains in play, although its downward slope suggests sellers are currently outpacing buyers during this consolidation phase. For Solana to move toward a near-term target of $120, the price needs to break above $105. As long as the 200-day EMA holds, the baseline scenario for the token remains bullish.