Solana surged past a nine-month high, fueled by rising institutional demand, the Fed’s latest rate cut, and steady growth in its developer ecosystem. In recent times, Solana has been among the top tokens that drew the attention of the crypto community for its speed and low cost compared to Ethereum.
The demand for Solana spiked when NASDAQ-listed design and technology company, Forward Industries, initiated steps to accelerate its Solana (SOL) accumulation strategy, a week ago. The firm filed a $4 billion at-the-market equity offering to accelerate SOL accumulation, with proceeds from the offering primarily allocated to purchase SOL.
With this hype, SOL’s already uptrend has elevated its gradient, and it is now almost rising parabolically after the Fed cut interest rates today. The token rose from $200 to $240 in about 10 days, briefly cementing its new higher low.
Strong SOL fundamentals trump technical signs
The chart below shows a bearish rising wedge, which at the point of completion breaks down. However, the fundamentals trumped the technical criteria of breaking out. Instead of falling lower after breaking down, the fundamentals helped SOL soar above, and it reached above its 9-month high of $240.
The Relative Strength Index, which dictates the state of the market, is on the verge of entering the overbought region. With the RSI at 68, SOL could be overbought if the RSI were to cross the 70 level.
According to NASDA, “Solana processed over 8.9 billion transactions in Q2 2025, resulting in approximately $4 billion of decentralized exchange trading volume per day. This activity has generated approximately $1.2B in real economic value (REV) year to date, a metric used to measure the free cash flow of blockchains. Adding more than 7,500 new developers in 2024, Solana is both the blockchain with the fastest-growing developer ecosystem and one of the most profitable blockchains in existence.”
