The crypto market has become more unpredictable as investors await the U.S. Federal Reserve’s decision on interest rates, which could bring new volatility to the market. Recently, the price of SOL went up and got close to $150, but it couldn’t break through and was pushed back down. This caused a drop in some key on-chain metrics, as investors started diverting their investment.
According to the latest data from Coinglass, a large wave of liquidations occurred after Solana failed to sustain itself above the $150 mark. In the past 24 hours, over $7 million in Solana positions were liquidated. Of that, about $1.61 million came from buyers who were betting on prices going up (long positions), while sellers closed around $5.42 million worth of positions. This liquidation activity might continue if the price breaks the crucial support levels.
One factor affecting Solana’s price is the decline in network activity. As highlighted by The Block, the number of active addresses on Solana has fallen sharply in recent weeks, dropping from a high of 4.12 million to a low of 3.31 million. Similarly, the count of new addresses has also taken a hit, decreasing from 4.11 million to 3.2 million. This overall decline in usage is making it harder for Solana to break through its current price resistance.
The market is now closely watching today’s U.S. Federal Reserve meeting, which could bring new volatility. While Donald Trump’s recent comments have sparked positive hope, the CME FedWatch Tool shows only a 2.3% chance of a rate cut happening today. Most experts expect the Fed to keep interest rates steady at 4.25% to 4.50%.
If the Fed cuts rates, Solana could jump above $150. If rates stay the same, SOL will likely keep moving sideways within its current trend.
Solana is currently getting support around the 20-day EMA, showing that buyers are stepping in during price dips. However, bears are strongly defending a push above the resistance of $150-$160. As of writing, SOL price trades at $145.8, surging over 1.4% in the last 24 hours.
Buyers are likely to try pushing the price above the $150 resistance again. If they succeed, SOL could climb to $180. This will create a broad trading range within $110 and $215.
On the other hand, if sellers manage to push the price below the 20-day EMA, SOL might drop toward the $133 level. In that case, the price could stay stuck between $105 and $150 for some time.
The long/short chart for Solana shows a noticeable drop in the ratio, now sitting at 0.5122. This means about 66% of traders are betting that SOL’s price will continue to fall.
