Solana extends gains as traders reduce Fed rate hike bets following dovish Fed comments

<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="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">We haven’t got new major Solana’s specific catalysts in the past couple of days as macro and geopolitical developments continued to dominate the price action. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">The latest rally was driven by dovish comments from <a href="https://investinglive.com/central-banks/fed-s-williams-one-more-hike-likely-this-year-is-likely-enough/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Fed’s Williams</a> and <a href="https://investinglive.com/central-banks/fed-s-jefferson-weighing-more-data-will-allow-the-fed-to-make-a-better-call-on-rates/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Fed’s Jefferson</a> this week, which provided a boost to the crypto market despite the ongoing US-Iran stalemate.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Williams, the President of the New York Fed, and Jefferson, the Fed Vice Chair, are two of the three members of the so-called Fed “troika”, alongside the Fed Chair. Their comments tend to carry significant weight with markets, and this time they triggered a dovish repricing that pushed the probability of an October rate hike down from around 70% to roughly 25%.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Looking ahead, the focus will remain on developments in the Middle East and the Fed. A breakthrough in US-Iran negotiations could provide further support for Solana as expectations for aggressive Fed tightening would likely be pared back further. On the other hand, a prolonged stalemate or renewed escalation could limit the upside unless the Fed continues to sound more dovish than markets expect.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Today, we have also the US NFP report on the agenda. Given the recent comments from Williams and Jefferson, we would likely need a blockbuster report, with the data beating expectations across the board, to revive expectations for an October hike. Such an outcome could trigger another hawkish repricing and weigh on Solana in the short term.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">In-line or weaker-than-expected data, on the other hand, would likely reinforce the dovish repricing and give Solana room to extend its recent rally.</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>found support from the dovish Fed comments. 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 into it, we can expect the buyers to step in, with a defined risk below the support, 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 upward trendline defining the recent bullish move. If we get a pullback, we can expect the buyers to lean on it, 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 117.00 support.</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: 102%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Today</a>we conclude the week with the US NFP report. </p><p></p> This article was written by Giuseppe Dellamotta at investinglive.com.