Solana Price Faces Crucial Test Above $120

The Solana price has reached a critical juncture after breaking above $120 and hitting an intraday high of $122.18 on September 25. This move came as the Federal Reserve opened comments on two payment stablecoin issuer proposals under the GENIUS Act, which could shape how supervised issuers approach public blockchain activity.

The proposals would require issuers to fully back payment stablecoins with permissible reserve assets and establish standardized capital requirements for credit and operational risks. While these rules do not regulate Solana or endorse its token, they may impact the network's stability as digital dollars support trading, payments, and decentralized finance activity.

Traders now face a technical decision around the $120 breakout level, with the next ceiling sitting between $122 and $124. A durable move through this band could bring the $132 chart target into view, but a reversal could return attention to $116 or even the $108 to $110 zone.

ETF buying and short liquidations supported Solana's price climb, which outpaced a mostly flat Bitcoin during the same period. However, forced buying from closing short positions can accelerate an existing rise but may also fade quickly, making the next close around $120 important for the SOL price.