Solana extended its rally after dovish remarks from two senior Fed officials cut the odds of an October rate hike. The move coincides with a record week of U.S. spot Solana ETF inflows, leaving the token testing the $122.65-to-$124.95 resistance band that sits just under the $125 level traders are watching.
Solana climbed this week as traders pared back bets on another Federal Reserve rate increase. Dovish comments from Fed's Williams and Fed's Jefferson pushed the probability of an October hike down from around 70% to roughly 25%, and the shift gave the broader crypto market a lift despite the ongoing U.S.-Iran stalemate.
Fed comments carry outsized weight
Williams, president of the New York Fed, and Jefferson, the Fed vice chair, sit alongside the Fed chair in what the market calls the Fed "troika," so their remarks tend to move prices more than those of other officials. With the U.S. jobs report due the same day, a blockbuster print beating expectations across the board would likely be needed to revive hike bets and weigh on Solana in the short term. In-line or weaker data, by contrast, would likely reinforce the dovish repricing and give the rally more room to run.
Record ETF inflows add a second tailwind
Fund flows have reinforced the move. U.S. spot Solana ETFs took in about $188 million in net inflows in the week reported September 28, a weekly record. Bitwise's BSOL accounted for roughly $128 million, or 68% of the total. All seven U.S. spot Solana ETF products recorded inflows that week, according to CoinDesk.
Price holds below the $125 test
SOL traded at $120.29 at 03:21 UTC on October 2, sitting between a support cluster near $118 and a resistance band stretching from $122.65 to $124.95. Daily RSI stood at 64.0, a bullish reading still below the overbought threshold. SOL also traded above all eight moving averages tracked by Coinotag. However, DappRadar's October 2 assessment put MACD at a bearish, or sell, signal, leaving momentum indicators split even as the broader trend stays constructive.
Clearing the $122.65-to-$124.95 band would put the $125 level back in play and align price action with the bullish RSI and moving-average setup. A daily close below the $118.01 support, meanwhile, would weaken the bullish case and expose the next support at $113.18.
Sources: investingLive, Crypto Daily
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