Solana (SOL) climbed 2.97% on Wednesday to $146.56, extending a 43% rally over the past month. The Layer-1 blockchain is riding a wave of investor momentum ahead of today's Federal Reserve interest rate decision and drawing renewed attention as key network developments unfold.
Solana Name Service (SNS), the decentralized domain protocol on Solana, launched its SNS token this week. The new token replaces Bonfida's FIDA and is intended to better serve the growing community of .sol domain users.
Of the token's 10 billion supply, 40% has been allocated for airdrops—with 20% specifically earmarked for early .sol domain holders and long-time project supporters. The airdrop rewards loyalty but also raises questions about short-term volatility.
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Despite the risk, the token drop has galvanized interest in Solana-based decentralized identity infrastructure. Broader integration of SNS into wallets and applications could help cement the protocol's role in Solana's expanding digital ecosystem.
SOL's rally comes amid bullish positioning across futures markets. According to Coinglass, Solana's long/short ratio hit a monthly high of 1.04, suggesting that traders are increasingly betting on continued price gains.
Technical indicators also support the rally. The Relative Strength Index (RSI) for Solana sits around 57.5, indicating growing bullish momentum while still leaving room for additional upside before overbought conditions emerge.
As of Wednesday, SOL is holding above the $142.59 support level. If demand persists following the Federal Open Market Committee (FOMC) meeting, the coin could aim for a retest of the $171.88 resistance last touched in early March.
However, a hawkish surprise from Fed Chair Jerome Powell could spark renewed selling pressure across risk assets, including crypto.
In parallel with token launches and technical momentum, institutions are doubling down on Solana. Benzinga reported Tuesday that DeFi Development Corp JNVR recently acquired over 82,000 SOL, bringing its total holdings above 400,000 tokens—valued near $59 million. The firm also purchased a validator operation and plans to stake its tokens through proprietary infrastructure.
The moves follow Solana ETF applications from VanEck, 21Shares, Bitwise, and Canary Capital, with Bloomberg analysts giving them a 90% chance of approval.
With new token launches, strong trading momentum, and continued institutional investment, Solana enters a potentially pivotal phase. Wednesday's Fed meeting may dictate short-term price action, but the long-term narrative hinges on the network's ability to scale efficiently and support real-world applications.
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