Why is Solana (SOL) price up today? #solanaValidators

Solana is currently targeting a close above $140 for the first time in September as the recent rate cuts are expected to boost the crypto market.

Solana’s (SOL) price rallied almost 10% from a low of $128 over the past 24 hours after the US Federal Reserve announced a rate cut by 50 basis points, lowering interest rates to 4.75%-5%. 

$SOL SOL price rebound eyes $140 breakout

While the 0.5% cut was largely expected, Bitcoin and the wider crypto market reacted positively after Jerome Powell’s dovish speech despite the economy having a “solid” growth rate. 

The Fed Chair noted:

“I don't see anything in the economy that suggests the likelihood of a downturn is elevated. You see growth at a solid rate, you see inflation coming down, you see a labour market that's still at very solid levels”.

Additionally, Solana’s high price correlation with Bitcoin continues to boost the altcoin market as the entire crypto market rose in response to the macro event.

The chart indicates that SOL and BTC share a 90-day rolling correlation index of 0.74.

SOL funding rate hits two-month high

Another possible reason why Solana demonstrated a rapid pump is futures traders. The SOL funding rate jumped to a new two-month high of 0.0107.

Open interest, or OI, has been progressively increasing over the past week, but a flash spike in the funding rate indicates a trend shift since it was negative a week ago.

A price rise of 4% on Sept. 19 coincides with the funding rate spike, which suggests that more future traders are going long. A similar spike in the funding rate was last observed in July when SOL price rallied from $134 to $193, or 43%.

Solana continues to find support at $127

Earlier this month, Cointelegraph highlighted a major support range for Solana at $127. Despite several retests of this level in the last few days, SOL has not closed a daily position below $127 since April.