Solana (SOL), currently the fifth-largest cryptocurrency by market capitalization, has mirrored Bitcoin (BTC)’s recent uptrend, showing a positive trajectory over the past few weeks.
The latest price rally on Friday came on the heels of positive macroeconomic developments from the US Federal Reserve (Fed) that had a positive impact on the broader cryptocurrency market.
7% Weekly Gain on Economic News
SOL is up almost 4% in the last 24 hours, showing a 7% gain over the past week. This rebound comes after SOL fell to $110 on August 5, which was due to general market turbulence caused by negative economic news affecting risk assets.
Contrary to previous negative economic trends, the recent situation has taken a turn for the better following a noteworthy statement by Federal Reserve Chairman Jerome Powell.
IN speech delivered earlier today, Powell hinted at the likelihood of the central bank cutting interest rates in September. While details about the scale of the move were not explicitly disclosed, Powell stressed the Fed’s willingness to adjust policy to protect the labor market from further deterioration and ensure a glossy economic transition.
“The time has come to adjust policy,” Powell noted at the Kansas City Fed’s annual conference in Jackson Hole, Wyoming. He emphasized clarity on the direction of policy adjustments, emphasizing that the timing and scale of interest-rate cuts will depend on incoming data, changing economic forecasts and risk assessments.
Solana price projection
The market reaction to Powell’s statements was palpable, with Bitcoin rising to $63,000 at the time of reporting. Additionally, Ethereum (ETH) was up 4.4% to $2,730, a level not seen since delayed July.
In addition, a recent observation by cryptocurrency analyst Ali Martinez I suggest that Solana may be forming an Adam and Eve formation, which could suggest a potential upside towards $164 if SOL manages to break through this resistance level.
In case of a successful breakout, a significant 33% rally towards $220 could be on the horizon. If this prediction materializes, SOL price will fall just below its previous all-time high of $259 recorded during the 2021 bull run that peaked in November of this year.
This expected escalate would also put SOL well above its yearly high of $210, which was reached five months ago. However, in the near future, SOL price must first overcome the $151 resistance that has prevented the token from rising since August 11.
If the price breaks through this level, the token will be in a favorable position to potentially retest and consolidate above the next major resistance in the $161 zone.
Featured image from DALL-E, chart from TradingView.com
