Solana Price Prediction: Bull Market Begins for SOL With Next Target Set at $149

Solana (SOL) has surged by 14% in the past 7 days following last week's key interest rate decision from the Federal Reserve.

The market seems to be ready to move to higher price levels, as analysts' uncertainty regarding the United States' macroeconomic landscape has eased.

Last week, the Federal Reserve hiked its benchmark interest rate for the first time since September 2023, as inflation in the U.S. continues to sit at high levels.

The head of the central bank emphasized the institution's commitment to take all necessary actions to prevent inflation from spiraling out of control, and analysts are now envisioning another rate hike during the Fed's December meeting as a result.

Although higher rates tend to be unfavorable for the crypto market, these hawkish actions were already priced in, as they were widely expected.

This gives the market a sound baseline to start rallying from. In addition, a setback in the Senate for the Clarity Act was greeted with supportive comments from the U.S. Securities and Exchange Commission (SEC).

The regulator's top boss made comments that showcase his office's intention to push forward rules that foster the sector's growth.

These narratives have helped keep crypto prices in rally mode and have set the stage for a massive short squeeze that could help push Solana to $145 at least in the near term.

Looking at on-chain data , we can see that daily active users (DAUs) have spiked in September. This has pushed the 30-day moving average for this metric above the 50-day MA, a bullish crossover that has anticipated strong price moves in both directions in the past.

The last time this crossover happened was on June 24, back when SOL was trading at around $68. Just two months later, the price had surged to $100 for a 47% gain.

An increase in the network's DAUs tends to indicate that traders are positioning for a massive price move. As data from Santiment shows, the last four times this crossover has happened, it has accurately predicted strong upswings and downswings.

Based on the latest price action, we expect that this latest crossover is predicting a big move ahead that could push SOL to at least $149 in the near term, meaning a 28% upside potential.

Turning to the daily chart, we can see that Solana broke out of its bull flag pattern on Friday with a massive candle.

High volumes validate the decisiveness of this breakout, and a quick look at the daily time frame gives us a clear target at around $149.

The Relative Strength Index (RSI) just sent a buy signal upon rising above the signal line and moving past the 60 mark. This clearly indicates that bullish momentum is accelerating.

Paired with a supportive regulatory backdrop for cryptos in the U.S., and now that the macro backdrop is much more certain, all of the evidence points to the beginning of a fresh bull market for Solana.

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