Solana price surges to 8-month highs on institutional demand and rate cut bets
Solana (SOL) has broken out to its highest level in eight months, lifted by rising institutional inflows, robust on-chain activity, record futures interest, and broader optimism around Federal Reserve rate cuts.
Solana trades in eight-month highs
Solana has surged to eight-month highs, driven by a combination of institutional demand, stronger on-chain activity, technical momentum, and supportive macro conditions.
Institutional appetite has played a major role, with corporate treasuries now holding more than $1.7 billion in SOL and the potential for billions more to flow in.
Confidence was further boosted by the Solana Foundation’s partnership with R3, which involves major banks such as HSBC, Bank of America, and Euroclear, highlighting Solana’s growing role in tokenization and traditional finance.
On-chain fundamentals also point to renewed strength: total value locked has risen about 15% in the past month, while decentralised application revenues nearly doubled year-on-year (YoY) to reach $148 million in August. This has coincided with record futures activity, as open interest climbed above $13 billion, underscoring rising conviction among traders.
Broader macro conditions have also worked in its favour, as easing inflation trends and expectations of Fed rate cuts have supported risk assets across the board, with altcoins like Solana benefiting disproportionately from the shift in sentiment.
However, risks remain: a more hawkish Fed stance, or intensifying competition from rival blockchains could limit upside momentum. Even so, the current rally suggests that if Solana clears these hurdles, targets closer to $260.00 or even $300.00 may come into view.
Solana bullish scenario:
Solana's rise above its $209.88 mid-August high is technically bullish with the November 2021 high at $260.05 and the November 2024 peak at $264.53 being in focus.
Further up beckons the January peak at $295.11.
Potential slips may find support around the August high at $217.93 and the 3 September high at $212.97.
Solana bearish scenario:
Only if Solana were to fall through its 6 September low at $199.39, would the early September low at $194.23 be eyed.
If also fallen through, the 25 August low at $185.55 might be reached.
Solana daily candlestick chart
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