Ethereum

Solana

when

Avalanche

Solana (<a data-ct-non-breakable="null" href="https://cointelegraph.com/solana-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/solana-price-index">SOL)</a> price has risen by around 4.50% in the last 24 hours to reach $158.65 on Sep. 27. 
<figure>
 <img alt="Why is Solana (SOL) price up today?" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0192329d-a362-7b05-8a43-00e94532830f">
 <figcaption style="text-align: center;">
 SOL/USD four-hour price chart. Source: TradingView
 </figcaption>
</figure>
The upward momentum aligns with a broader cryptocurrency market rally, driven largely by loosening monetary policies. In addition, a recent VanEck report has boosted upside sentiment in the Solana market.
<h2 id="sol-price-could-reach-330-vaneck">SOL price could reach $330: VanEck</h2>
A report released by VanEck on Sept. 25 <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/solana-may-hit-330-reach-50-eth-market-cap-van-eck" rel="" target="_self" text="null" title="https://cointelegraph.com/news/solana-may-hit-330-reach-50-eth-market-cap-van-eck">forecasts</a> that Solana could climb to $330, potentially capturing 50% of Ethereum’s (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="" target="_self" text="null" title="https://cointelegraph.com/ethereum-price">ETH</a>) current market capitalization. 
VanEck cites Solana’s superior transaction speed and processing capabilities as one of the major catalysts behind its bullish outlook. Specifically, Solana’s blockchain can handle thousands of transactions per second (TPS), greater than Ethereum’s TPS by 3,000%. 
<figure>
 <img alt="Why is Solana (SOL) price up today?" name="" src="https://s3.cointelegraph.com/uploads/2024-09/019232c2-bb5d-783a-82ca-2881edead5bd">
 <figcaption style="text-align: center;">
 Solana’s Transactions per second metrics. Source: <a data-ct-non-breakable="null" href="https://solanacompass.com/" rel="null" target="null" text="null" title="https://solanacompass.com/">Solana Compass</a>.
 </figcaption>
</figure>
Meanwhile, Solana’s daily active users outpace Ethereum by 1,300%, and its transaction fees are nearly 5 million percent cheaper. 
These factors make Solana more appealing for high-volume transactions, especially in areas like payments and remittances, where speed and cost-efficiency are crucial, according to VanEck.
Following the bullish forecast, SOL’s price surged 7.50% as investor sentiment strengthened around the possibility of Solana’s increased adoption in the DeFi space. 
<h2 id="interest-rate-cuts-boost-risk-sentiment">Interest rate cuts boost risk sentiment</h2>
In September, major central banks worldwide lowered borrowing costs in response to slowing economic growth. 
The US Federal Reserve (Fed) <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/fed-rate-cut-politically-motivated-increase-inflation-arthur-hayes" rel="" target="_self" text="null" title="https://cointelegraph.com/news/fed-rate-cut-politically-motivated-increase-inflation-arthur-hayes">cut its interest rate by 0.5 percentage points</a>, bringing the target range down to 4.75%-5%. Similarly, the European Central Bank (ECB) has eased its monetary policies, reflecting Europe’s sluggish economic data.
In China, the People’s Bank of China (PBoC) implemented multiple measures to lower borrowing costs, beginning with a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/70k-next-bitcoin-china-fed-macro-event" rel="" target="_self" text="null" title="https://cointelegraph.com/news/70k-next-bitcoin-china-fed-macro-event">cut in reserve requirement ratios (RRRs)</a>, which allowed banks to increase lending and improve liquidity. 
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-target-rises-78k-chinese-stimulus-package" rel="null" target="null" text="null" title="null">Bitcoin price target rises to $78K after Chinese stimulus package</a>
Easing monetary policies has created a more favorable environment for risk-on assets, including cryptocurrencies. 
Lower interest rates reduce the cost of borrowing and improve liquidity, prompting investors to seek higher returns in riskier markets, which is benefiting Solana today.
<h2 id="solana-breaks-above-key-resistance-trendline">Solana breaks above key resistance trendline</h2>
Solana’s gains today are part of a rebound cycle that started on Sept. 5 after the price reached its “accumulation area” between $113 and $125, where it has found strong support during previous downward movements. 
The zone represents a critical base where buyers stepped in to prevent further declines, leading to a consolidation phase now serving as a strong support foundation. Solana’s rally from this accumulation area shows sustained buying interest and could provide a safety net for any price pullbacks.
<figure>
 <img alt="Why is Solana (SOL) price up today?" name="" src="https://s3.cointelegraph.com/uploads/2024-09/019232db-95b6-763b-8211-834bb273cf9e">
 <figcaption style="text-align: center;">
 SOL/USD daily price chart. Source: TradingView
 </figcaption>
</figure>
The most striking feature is the black downtrend line, which has acted as resistance since Solana’s peak near $205 in March. SOL broke above it on Sept. 26 and is continuing its breakout trend.
The next potential resistance level to watch is around the 0.382 Fibonacci level at $155.70, which SOL is trying to hold above. A successful break above this level could target the 0.5 ($165.23) and 0.618 ($174.75) Fibonacci retracement levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Why is Solana (SOL) price up today?

Innholdsfortegnelse

Cointelegraph

Andre artikler publisert på 7. feb. 2024

The Shib Ventures into LSD Market with K9 Partnership – What's Next for Shiba Inu?

Cathie Wood: Investors Are Moving From Gold To Bitcoin As Store Of Value

Top 10 Advantages of Cryptocurrency for Small Business Success

Shiba Inu Price: Will 500% Surge in Whale Activity Lead to an Imminent SHIB Rally?

How to Prepare. Miners to Effectively. Work Post-Halving

Bitcoin to $100K, Ethereum to $8K, Cardano ‘dead’ – This exec predicts…

Bli med på vårt gratis nyhetsbrev for daglige kryptooppdateringer!