Solana (SOL) Price Plunges to $183, But Technical Signals Suggest Potential Upside
- Solana (SOL) fell below $200 due to a market downturn following the Feds rate cut and cautious outlook.
- The Feds announcement triggered a sell-off in altcoins, with Solanas price dropping from $263 to $183.
- Technical indicators suggest a potential rebound, with a breakout from a descending trendline and bullish MACD crossover.
Solana (SOL) saw a significant price decline, dipping below the critical $200 support level, amid a broader downturn in the cryptocurrency market. The drop followed a series of market-moving events, notably the Federal Open Market Committee (FOMC) meeting, where the Federal Reserve reduced interest rates by 25 basis points.
While this move was widely anticipated, the markets were caught off guard when Federal Reserve Chair Jerome Powell stated that no further interest rate cuts are expected until 2025. This cautious outlook put added pressure on global financial markets, particularly cryptocurrencies, which are highly sensitive to interest rate decisions.
The aftermath of the Feds announcement has sparked fear and uncertainty in the market, leading to a sharp decline in Bitcoins price. This decline rippled through the entire crypto space, causing altcoins and meme coins to experience heavy sell-offs. Among the worst-hit was Solana, which saw its price fall dramatically from a peak of $263 to a low of $183.
At the time of writing, SOLs price is $186.79, reflecting a decrease of 1.05% in the last 24 hours. With a 24-hour trading volume of $12.05 billion and a market capitalization of $89.50 billion, Solana holds a market dominance of 2.64%.
Solanas Technical Indicators Hint at Potential Rebound
Despite the recent pullback, there are signs that Solana might be gearing up for a potential recovery. Crypto analyst Trader Tardigrade recently pointed out that the 4-hour chart of Solana shows early signs of upward momentum.
The price chart indicates a breakout from a descending trendline, a positive technical indicator suggesting that the market might soon resume its upward trajectory. Furthermore, the analyst noted a bullish crossover in the MACD (Moving Average Convergence Divergence) indicator, signaling that SOL could be on the verge of a rebound.
Solana remains in a critical position as the broader crypto market continues to navigate the uncertainty brought on by the Feds stance. Whether SOL can regain its footing above the $200 support level will depend on how market conditions evolve in the coming days. Investors and traders will be watching closely to see if Solana can leverage its recent technical signals to mount a strong recovery.
Related | Bitcoin (BTC) Sets Sights on New All-Time High (ATH), but $97K Support Holds the Key
Text source: TronWeekly
