Solana Stuck at $100 as Activity Rises Ahead of Fed Decision

Solana's price has been stuck within a narrow range lately, with buyers defending the key $100 level ahead of the Federal Reserve's interest-rate decision. Despite this, activity on the Solana network has increased, which could signal a significant price move.

The probability of a September interest-rate increase has risen to 70% from 50%, according to CME Group's FedWatch tool. Higher interest rates typically weigh on cryptocurrencies by tightening financial conditions and increasing the appeal of yield-bearing traditional assets.

Solana has gained only 0.7% over the past seven days, reflecting the market's cautious approach ahead of the Fed decision. However, a bullish setup could emerge if activity continues rising, giving buyers an advantage.

The current market structure leans bullish after Solana broke above its 200-day exponential moving average. However, a more hawkish-than-expected message from the Federal Reserve could invalidate this setup and trigger a sharp decline.