Solana (SOL), currently ranked as the fifth-largest cryptocurrency by market cap, is mirroring Bitcoin’s (BTC) recent recovery pattern, exhibiting a positive trajectory in recent weeks.
Friday’s recent price surge comes on the heels of positive macroeconomic developments from the US Federal Reserve (Fed), which have had a positive impact on the broader cryptocurrency market.
Weekly rise of 7% amid economic news
In the last 24-hour window, SOL is up nearly 4%, showing a 7% increase over the past week. This recovery comes after SOL fell to the $110 mark on August 5, marked by the general market turmoil triggered by adverse economic news impacting risk assets.
Contrary to the negative economic outlook witnessed previously, the recent outlook has improved following a noteworthy statement by Fed Chairman Jerome Powell.
In a speech In a statement delivered earlier today, Powell suggested the likelihood of a rate cut by the central bank in September. While details regarding the magnitude of this measure were not explicitly disclosed, Powell emphasized the Fed’s willingness to adjust policies to safeguard the labor market from further deterioration and to ensure a smooth economic transition.
“It’s time for policy to adjust,” Powell said during the Kansas City Fed’s annual conference in Jackson Hole, Wyoming. He emphasized clarity of guidance for policy adjustments, noting that the timing and scale of rate cuts would depend on incoming data, evolving economic forecasts and risk assessments.
Solana Price Projection
The market response to Powell’s statements was palpable, with Bitcoin reaching the $63,000 mark at the time of reporting. Additionally, Ethereum (ETH) saw a 4.4% increase to reach the $2,730 level, a peak not seen since late July.
Additionally, a recent observation by crypto analyst Ali Martinez suggests that Solana may be forming an Adam and Eve pattern, suggesting a potential rise to $164 if SOL manages to break this resistance level.
In the event of a successful breakout, a substantial 33% increase to $220 could be on the horizon. Should this projection come to fruition, the SOL price would fall slightly below its previous value. all-time high from $259 recorded during the 2021 bull run, which peaked in November of that year.
This expected increase would also put SOL well above its yearly high of $210, reached five months ago. In the near term, however, the SOL price must first surpass the $151 mark. resistance wall that has prevented the token from rising since August 11th.
If the price breaks above this level, it would favorably position the token to potentially retest and consolidate above its next major resistance at the $161 zone.
Featured image of DALL-E, chart from TradingView.com