Institutional demand for Solana exchange-traded funds (ETFs) has shown signs of exhaustion recently, pausing short-term bullish projections. According to market analyst Harvey Hunter, the current Solana price prediction depends largely on the upcoming monetary policy decision by the United States Federal Reserve. Although flows have decreased significantly compared to previous weeks, a daily uptick of $16.5 million suggests that some investors are already positioning themselves early for a trend reversal.
Market participants are heavily pricing in a 50 basis point interest rate cut for this month, which could act as the necessary trigger for risk assets. Recent macroeconomic data, such as better-than-expected inflation, has consolidated these expectations, with 11 of the 12 FOMC members supporting an easing in December. In fact, market odds for this scenario now stand at a compelling 89%, creating an environment of high expectation for cryptocurrency traders.
Solana is shaping up to be one of the main beneficiaries of this potential shift in monetary policy, having proven to be the preferred institutional play over recent months. The asset recorded an impressive streak of capital inflows for 22 consecutive days, even amidst what was the sector’s second-worst month of the year overall. Traditional financial markets, or TradFi, took advantage of the dip to accumulate SOL while most other ETF offerings suffered constant capital outflows.
The imminent impact of monetary policy on technical structure
Technically, a 50 basis point rate cut could provide the necessary fuel for the asset to complete a double bottom pattern on daily charts. Currently, the $145 level acts as the last significant barrier before confirming a solid and sustained reversal structure. Momentum indicators, such as the RSI and MACD, continue to reflect accumulated buying pressure, suggesting that an uptrend with real staying power has taken root.
If the breakout above immediate resistance is confirmed, the double bottom pattern projects an initial target toward $210. This would set the stage for a retest of the year-long descending triangle, opening the door to a much more ambitious breakout scenario. In this optimistic context, analysts point to levels near $500, which would represent a potential gain of 260% for investors entering at current levels.
Could a rate cut propel Solana toward $1,000?
Looking beyond the immediate horizon, a dovish stance by Fed Chair Jerome Powell could catalyze even more explosive movements heading into 2026. If macroeconomic conditions and the general economy favor liquidity, Solana could have enough momentum for a run toward $1,000. This milestone would represent an astounding 630% return, consolidating the asset as one of the undisputed leaders of the next bull cycle.
However, investors must remain cautious of the possibility of negative surprises regarding the interest rate decision. An unexpected rate hold could trigger a technical rejection at the $145 level, invalidating the immediate bullish setup. In such a case, selling pressure could return, retesting the lower support of the triangle and double bottom located at $120, forcing traders to reevaluate their short-term risk management strategies.
