SOL consolidates near recent highs as Solana launches DvP and Treasury yields ease. What's next?

<p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 102%; font-family: Aptos, sans-serif; font-size: 15px;">The <a href="https://investinglive.com/cryptocurrency/solana-launches-open-settlement-standard-for-institutions-with-jpmorgan-input/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Solana Foundation launched Solana DvP (Delivery-versus-Payment) today</a>, an open-source settlement infrastructure designed for financial institutions. It allows the asset and cash legs of a transaction to settle atomically in a single transaction, with input from J.P. Morgan. This directly targets the institutional tokenization/settlement use case rather than just speculative crypto activity.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 102%; font-family: Aptos, sans-serif; font-size: 15px;">On the macro side, the crypto market found some support recently from the dovish repricing in Fed interest rate expectations after Fed’s Williams and Fed’s Jefferson pushed back against an October rate hike. Moreover, the softer than expected US NFP report on Friday reduced the probabilities for a near-term Fed action further, with traders now pricing just a 21% chance of a hike in October. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 102%; font-family: Aptos, sans-serif; font-size: 15px;">Given a very light calendar this week, the focus will likely remain on US-Iran developments. If we get a breakthrough, we can expect oil prices to drop significantly and give Solana a boost on lower rate hike expectations and positive risk sentiment. Another escalation, on the other hand, will likely send crude oil higher and weigh on the crypto market.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 102%; font-family: Aptos, sans-serif; font-size: 15px;">A prolonged stalemate could be viewed as neutral to bullish if Treasury yields decline or the US CPI doesn’t surprise to the upside. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/SOLUSD/" rel="follow">Solana</a>is consolidating near the recent highs. The major upward trendline will remain a key support, though, in case we get a pullback. The buyers will likely lean on the trendline, with a defined risk below it, to keep targeting the 149.00 level. The sellers, on the other hand, will look for a break lower to extend the correction into the 97.00 support next.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 4 hour chart, we have a minor support zone around the 117.00 level. If we get a pullback, we can expect the buyers to step in around the support, with a defined risk below it, to keep pushing into new highs. The sellers, on the other hand, will look for a break lower to extend the pullback into the major trendline.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 1 hour chart, we have a minor downward trendline defining the current pullback. The sellers will likely continue to lean on the trendline, with a defined risk above it, to keep pushing into new lows. The buyers, on the other hand, will look for a break higher to pile in for a rally into new highs.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Tomorrow</a>we have the FOMC meeting minutes. On Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude the week with the University of Michigan Consumer Sentiment survey.</p> This article was written by Giuseppe Dellamotta at investinglive.com.