Although Solana has had a rather inconsistent August, it is eyeing a notable September surge. Specifically, it may be set to skyrocket with interest rate cuts looking to arrive next month from the Federal Reserve. SOL has already shown a propensity to react positively to Fed decisions.
A recent speech from Fed Chair Jerome Powell confirmed the connection. A market rally that took place during his statement was notably pronounced for SOL. Indeed, the token increased from $140 to $160 following the dovish sentiment. That may be a sign of what’s to come.
Also Read: Solana: Will SOL Reach $200 in September?
Fed May Drive Solana to Yet Another Dominante September
Several cryptos have struggled in August. Yet, none have floundered as much as Solana. The asset seemed bound to enjoy a continued price increase. It had been talked about in the same vein as Bitcoin and Ethereum, eyeing its very own ETF next year. However, that was derailed this month.
Over the last 30 days, Solana has fallen more than 22%, according to CoinMarketCap. In the last 24 hours alone, SOL has dropped more than 7.8% to trade at its current $142 level. Yet, that could be poised to change in the coming months.
Solana may be eyeing another September surge, with highly-anticipated interest rate cuts likely to provide some reprieve for traders. The Federal Reserve has confirmed it will decrease the 23-year high interest rates next month. That August 23rd announcement saw Solana reach $160.
Also Read: Solana To Break Consolidation Soon Could Peak At $450, Analyst Says
The asset hadn’t sustained a level above the $160 mark since late July, when it reached heights of $184. Moreover, September has proven to be a good month for Solana in years past. It has typically printed a bullish result. In 2022, SOL increased 5% after dropping 25% in that August. In 2023, it increased 8% after a 17% drop.
This does appear to be a trend for the cryptocurrency. Additionally, it should have the benefit of positive market sentiment. Interest rate cuts have long been hoped for, and it should drive further investment into the crypto sector.
The network usage of Solana will also be a factor. However, it has long been lauded for its cheap transaction fees and speed. That should favor increased usage. Especially as the positive sentiment also drives meme coin interest. Such a shift caused massive gains for Solana early in the year.