Solana Holds Above $230 Ahead of Fed Rate Decision
Solana (SOL) is trading above $235 on Tuesday, down nearly 6% from last week’s peak of $250. The token tested support at $230 the day before. Institutional interest is helping to limit further losses.
Investors are now focused on the U.S. Federal Reserve’s interest rate decision expected on Wednesday. The CME Group’s FedWatch Tool shows a 96% chance the Fed will cut rates to 4.00%–4.25%. Some expect a 50 basis points cut. Lower rates often boost investments in riskier assets like cryptocurrencies and stocks. This could increase demand for digital assets in the last quarter of the year.
Pantera Capital CEO Confirms $1.1 Billion Solana Exposure
Dan Morehead, CEO of Pantera Capital, spoke on CNBC Tuesday. He confirmed the firm holds $1.1 billion in Solana, its largest digital asset position. Morehead called Solana the fastest and most cost-effective blockchain. He said it has outperformed Bitcoin over the past four years.
Morehead said Pantera aims to give regular investors access to Solana. Institutional interest in Solana is growing. Companies like Forward Industries and Helius have launched treasury strategies involving SOL. Canadian investment firm SOL Strategies began trading on NASDAQ last week under the ticker STKE, showing Solana’s growing maturity as an asset.
Retail interest remains strong. Solana’s price rose nearly 50% since August 1, from $155 to above $230. Futures Open Interest averages $16.53 billion, indicating many traders expect the price to rise toward $250 and the all-time high of $296 from January 19.
Technical Outlook: Solana Tests Key Support Levels
Solana stays above the $230 support level as buyers seek a quick rise above $250. The token trades well above key moving averages:
- 50-day EMA at $201
- 100-day EMA at $187
- 200-day EMA at $176
These averages may act as support if selling pressure increases. The Relative Strength Index (RSI) dropped from overbought levels to 61, showing weaker bullish momentum. If this trend continues, Solana’s price could fall below $230 and test the 50-day EMA near $201.
