Solana Stuck at $100 as Fed Rate Hike Bets Rise

The price of Solana (SOL) has been trading within a narrow range in recent times, with buyers defending the psychologically important $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.

Rising activity on the Solana network could be signaling a significant price move. According to CME Group's FedWatch tool, the probability of a September interest-rate increase has risen to 70% from a recent low of 50%.

A higher interest rate typically weighs on cryptocurrencies by tightening financial conditions and increasing the appeal of yield-bearing traditional assets.