Solana price surges to 8-month highs on institutional demand and Fed tailwinds

​​​Solana trades in 8-month highs

​Solana (SOL) has recently pushed up to its highest levels in about eight months, a move that reflects a confluence of favourable factors across investor sentiment, on-chain metrics, macroeconomic environment, and technical momentum.

​One of the biggest drivers is rising institutional demand. Reports suggest that corporate treasuries now hold over $1.7 billion worth of SOL, and analysts believe that more is likely to flow in. When large, long-term investors commit capital, it not only boosts price directly but adds credibility for other investors.

​In parallel, there has been a strong uptick in on-chain activity: Solana’s total value locked (TVL) in decentralised applications has increased by roughly 15% over the past month, and revenues from dApps have nearly doubled year-over-year (YoY). These improvements in usage and utility signal renewed strength beneath the surface of the SOL token, rather than just speculative hype.

​Another supporting factor is the futures market and trader behaviour. Open interest on SOL futures has surged past prior levels, which means more money is being bet on SOL continuing to climb. These derivatives markets often amplify momentum, particularly when traders expect continued upside or a favourable macro outlook such as the current dovish  Federal Reserve (Fed) policy.

​On the macro side, easing inflation and mounting expectations of further interest rate cuts by the US Fed have pushed risk assets to the forefront. With conventional yields under pressure, altcoins like Solana tend to benefit more when money looks for higher returns in riskier assets.

Potential risks and future targets

However, the rise comes with potential risks. With many coins now 'in profit', there is always a chance of a pullback if some investors decide to take gains. Also, momentum can be fragile: if macroeconomic conditions worsen or the Fed signals less dovishness than hoped, SOL could face headwinds. Competition from other smart contract platforms, or technical issues in network performance, could also temper further gains.

Looking ahead, many analysts believe that if SOL holds above its recent breakout levels, targets in the $250–$300 range are plausible. But these projected gains depend on the continuation of underlying trends such as sustained institutional flows, strong decentralised finance (DeFi) and non-fungible token (NFT) usage, a favourable regulatory environment, and continued strength in macroeconomic conditions that drive demand for growth and risk assets.

In short, Solana's surge to eight-month highs reflects more than just speculative excitement—it appears to be underpinned by real fundamentals, though it remains sensitive to external risks..  

​Solana bullish scenario:

​Solana remains bullish and trades close to last week's high at $249.60 with the November 2021 high at $260.05 and the November 2024 peak at $264.53 remaining in focus. Further up beckons the January peak at $295.11. Potential slips may find support around the mid-September low at $230.15. 

​Solana bearish scenario:

Only if Solana were to fall through its mid-September low at $230.15 could the short-term technical picture change to a bearish one, in which case a decline towards the 29 August high at $218.00 may unfold.

Solana candlestick chart