Solana Traders Eye $90 as Fed Hike Bets Surge

Solana's price has been trading within a narrow range recently, with buyers defending the $100 level ahead of the Federal Reserve’s interest-rate decision. The broader economic backdrop remains challenging for cryptocurrencies, as US inflation is still nearly two percentage points above the central bank’s target.

The probability of a September interest-rate increase has risen to 70% from a recent low of 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.

Despite this uncertainty, Solana's daily active users have increased consistently since mid-August, possibly due to new industry rules from the US Securities and Exchange Commission. This growth could indicate stronger demand for decentralized applications and other on-chain services, but it does not guarantee a price rise.