Solana (SOL) Surges 2% Ahead of FOMC Meeting

Solana (SOL) has experienced a 2% increase in the past 24 hours, driven by the broader market's optimism ahead of the upcoming Federal Open Market Committee (FOMC) meeting. The Layer-1 (L1) coin is currently trading at $147.83.

On-chain data reveals a surge in demand for long positions, indicating that an increasing number of traders are anticipating a price rally. This trend is further supported by the slight uptick in trading activity across the crypto market, which has contributed to SOL’s price increase.

SOL’s futures traders have shown optimism by increasing their demand for long positions. According to Coinglass, the coin’s long/short ratio has reached a monthly high of 1.04, indicating a preference for long positions among its futures market participants. The long/short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When its value is below one, more traders are betting on an asset’s price dip than on its rally. Conversely, a ratio above one, as with SOL, means more long positions than short ones, suggesting bullish sentiment with most SOL futures traders expecting its value to rise.

Additionally, on the daily chart, SOL’s rising Relative Strength Index (RSI) confirms the spike in demand for the altcoin. At press time, this momentum indicator is at 57.54. The RSI indicator measures an asset’s overbought and oversold market conditions, ranging from 0 to 100. Values above 70 typically signal an asset is overbought, while an RSI below 30 indicates oversold. SOL’s current RSI reading signals growing bullish momentum and leaves room for further upward movement before entering overbought territory.

As of this writing, SOL trades at $147.69, bouncing off the support at $142.59. If demand soars and market conditions remain favorable post-FOMC meeting, SOL could extend its rally and climb toward $171.88, a high it last reached on March 3. However, if the upcoming FOMC meeting sparks a resurgence in bearish pressure, SOL could face renewed selling momentum. In such a scenario, the coin may break below the support level at $142.59, paving the way for a deeper decline toward $120.81.