Solana Price Crashes After FOMC Bombshell: Is a Rebound Possible?
The Solana price has plunged by 8% today after the Federal Reserve held interest rates steady yesterday.
SOL is now sitting at $169, which represents a 0.4% loss in a week but a 15% gain in a month.
The altcoin has also risen by an impressive 600% in a year, outperforming most of its rivals.
And with the Fed’s Jerome Powell suggesting that a rate cut is coming in September, the Solana price is likely to rebound soon.
SOL may have taken a hit today, but it puts it in a prime position to make a nice recovery very soon.
Its 30-day average (orange) fell below its 200-day (blue) late last night, entering an oversold position from which it should rebound eventually.
Similarly, SOL’s relative strength index (purple) fellow as low as 20 early this morning, a level that can’t get any lower.
What’s interesting is that the Solana price bounced from its medium-term support level (green), having fallen to a point where new buyers couldn’t resist the temptation to pounce.
And it’s worth remembering that Solana fell yesterday only as the result of news that will have very short-lived negative effects.
As mentioned above, the FOMC met yesterday and decided to keep rates in the 5%-5.25% range.
This came as a disappointment to many traders, yet the Fed’s chair, Jerome Powell, did suggest that positive economic data will lead it to reduce rates in September.
When the entire crypto mc touches $4T, I expect Solana to have at least 10 percent dominance.
This would mean a $400B mc for SOL and a price target of at least $800.
— Madhatt3r (@pokerchessman) August 1, 2024
More generally, many traders believe that SOL is well below where it will be in the near and more distant future.
Its strength continues to reside with the fact that the Solana blockchain is
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