Solana (SOL) is showing signs of a price reversal after a recent partnership with a South Korean bank was announced. Amid a market-wide correction, SOL faced a sharp decline to the $60 price level earlier this month. According to CoinGecko data, SOL price has increased by 1.2% in the past 24 hours, 4.2% in the past week, and 13.7% on the 14-day chart. Let’s discuss whether a partnership with a Korean bank can continue to drive up the price of Solana (SOL).
Can Solana continue its price reversal?
Solana (SOL) today announced that South Korea’s internet-only Toss Bank will use blockchain for global remittances and payments. The bank has approximately 15 million customers who will be using the SOL blockchain. SOL Network has made great strides in transaction innovation with faster transfers and lower fees compared to its competitors.
Solana’s (SOL) price rise also comes as the larger crypto market is finding its footing. Bitcoin (BTC) fell to the $60,000 level earlier this month, but has since regained the $64,000 price level. Solana (SOL) may be following the trajectory of Bitcoin (BTC), and its recent banking partnership may have further solidified its recovery.
While this rise is laudable, it may not be sustainable. Solana (SOL) faced a sharp decline earlier this month after CPI (Consumer Price Index) numbers were higher than expected. US inflation will reach 4.2% in May 2026, prompting the Federal Reserve to keep interest rates on hold. Many expected interest rates to rise for a long time, with some expecting a rate hike later this year. Solana (SOL) and other high-risk assets could be affected by rising interest rates.
The U.S.-Iran peace deal has also come under scrutiny after Iran opposed President Trump’s threats and Israel’s recent attack on Lebanon. If the peace agreement is not implemented, energy markets are likely to suffer. Such a development would further fuel inflation. In such a situation, Solana (SOL) and the larger crypto market could see a significant decline.
(Tag translation) Solana
