Foreign media reports that after breaking through $100, Solana has entered a short-term consolidation phase, with $109 becoming the current main resistance level. The article suggests that this round of gains was driven more by the strength of Bitcoin and improved market liquidity. However, as BTC has fallen, the overall crypto market has also begun to cool down.
The increase in the past two weeks is still significant.
SOL once moved upward in tandem with Bitcoin. The article mentions that after Bitcoin rose to around $80,000, it triggered a general rebound in major crypto assets. However, after BTC fell back to the range of $77,000 to $78,000, SOL also weakened accordingly, with its price returning above $102.
- Down 3.4% in the past 24 hours
- Up 34.4% in the past 14 days
- Up more than 39% in the past month
Two events drive a rebound
The article attributes the recent rebound to two events. One of them is that Trump held a cryptocurrency event at the White House and stated that the United States plans to purchase a large amount of Bitcoin and other crypto assets. This statement is considered to have boosted market sentiment.
Secondly, the U.S. Treasury Department increased the scale of bond repurchases to nearly $4 billion, which led the market to expect an improvement in liquidity. The article argues that this change in funds provided support for the crypto market in the short term.
Interest rate hike expectations suppress risk appetite
However, the article suggests that there are signs of a slowdown in this upward trend. After Bitcoin gave back some of its gains, SOL also failed to continue its upward momentum. If BTC continues to face pressure, the short-term performance of altcoins may also be limited.
It is also mentioned in the text that expectations regarding Federal Reserve policy are once again affecting risk assets. The stance at the Jackson Hole Conference leaned towards a hawkish approach, and markets have begun to bet on a possible interest rate hike later this month. CME FedWatch Data shows that market expectations for a 25-basis-point interest rate hike are close to 60%.
Liquidity may experience a swing back.
The article argues that the liquidity support provided by the Ministry of Finance's bond repurchases in the early stages is not a long-term factor. Once this liquidity flows back, risky assets may once again face adjustment pressures, and it will be difficult for the crypto market to strengthen on its own.
Against this backdrop, whether the level around $109 can be effectively broken through still depends on whether Bitcoin can stabilize and whether the macro liquidity environment continues to improve. The overall judgment of the article is that SOL is still in a stage of resistance testing in the short term, and market volatility may continue to increase.
