Solana's Price Drops 1.4% as Fed Rate Decision Looms

Solana, a prominent cryptocurrency, has recently faced significant on-chain weakness following its rejection at the $150 price mark. This rejection has led to a notable decline in key on-chain metrics, as investors have begun to divert their investments elsewhere. The crypto market's volatility has been exacerbated by the anticipation of the Federal Reserve’s decision on interest rates, which has added to the uncertainty and selling pressure on SOL.

Solana's network activity has also taken a hit, with a sharp decline in the number of active addresses and new addresses. According to data, the number of active addresses on Solana has dropped from a high of 4.12 million to a low of 3.31 million, while the number of new addresses has decreased from 4.11 million to 3.2 million. This reduction in network activity has made it more challenging for Solana to break through its current price resistance.

The market is now closely monitoring the U.S. Federal Reserve meeting, which could introduce new volatility. While some positive comments have sparked hope, the likelihood of a rate cut today is low, with most experts expecting the Fed to maintain interest rates at 4.25% to 4.50%. If the Fed decides to cut rates, Solana could potentially surge above $150. However, if rates remain unchanged, SOL is likely to continue its sideways movement within its current trend.

Currently, Solana is receiving support around the 20-day Exponential Moving Average (EMA), indicating that buyers are stepping in during price dips. However, bears are strongly resisting any push above the $150-$160 resistance level. As of the latest update, the SOL price is trading at $145.8, reflecting a surge of over 1.4% in the last 24 hours. Buyers are expected to attempt another push above the $150 resistance. If successful, SOL could climb to $180, creating a broad trading range between $110 and $215.

Conversely, if sellers manage to push the price below the 20-day EMA, SOL might drop toward the $133 level. In this scenario, the price could remain stuck between $105 and $150 for an extended period. The long/short chart for Solana shows a noticeable drop in the ratio, currently sitting at 0.5122, indicating that approximately 66% of traders are betting on a continued decline in SOL’s price.