Solana (SOL) fell to $96 during a market-wide dip, then rebounded to reclaim $105 with a 5.6% gain in 24 hours and a 37% rise over the past month, according to CoinGecko data. The correction followed the U.S. Senate voting against the CLARITY Act, which investors viewed as bearish. The subsequent rally came after the Federal Reserve raised interest rates by 25 basis points, a move that typically drives investors away from risky assets but may have been priced in. Solana found support near $96–$100. Bernstein analysts anticipate Bitcoin reaching $100,000 by year-end, which could lift SOL toward $200 amid a broader market rebound.
Solana (SOL) recently fell to the $96 price level after a market-wide dip. However, SOL has since reclaimed the $105 mark, rallying 5.6% in the last 24 hours, according to CoinGecko data.
SOL’s price has also risen by more than 37% over the last month. The correction followed the U.S. Senate voting against the CLARITY Act.
Many investors may have taken the development as a bearish move on the U.S. government’s end and moved away from the high-risk market. Solana’s latest rally comes after the Federal Reserve decided to raise interest rates by 25 basis points.
This is a perplexing development, given that investors usually tend to divest from risky assets when interest rates are high. However, it is possible that the market priced in ahead of the interest rate hike, which may have given room for a slight rebound.
The cryptocurrency market environment is highly uncertain at the moment. While the rebound after the post-CLARITY Act failure was welcome, higher rates may present challenges for a sustained rally.
Solana seems to have some support at the $96 to $100 price range. Prices may oscillate between current levels and SOL’s support.
While there are some risks in the short term, we will likely see better results over a longer period. Solana has become one of the most resilient cryptocurrencies in the market, falling below $10 after the collapse of FTX in 2022 but hitting multiple all-time highs since.
Bernstein analysts anticipate Bitcoin to reclaim the $100,000 price level by the end of this year. Bitcoin hitting $100,000 will likely lead to a market-wide rebound, and SOL could potentially hit $200 under such circumstances.
