Solana price prediction: SOL starts climbing from support at $65 ahead of the Fed’s meeting on interest rates; expected to remain unchanged.
Published 12 hours ago
Solana price prediction as SOL steadies at $65 after this week’s flush from new 2023 highs at $78. The competitive smart contracts token slashed the gains in tandem with a similar correction in the price of Bitcoin and other majors.
Bitcoin price had stabilized above $41,000 on Wednesday after extending the decline to $40,000 on Monday. Ethereum was struggling to reclaim the support at $2,200 in the wake of a 1.3% dip on the day to $2,188.
Solana, Polkadot, and Chainlink stand out as the biggest losers contributing to a 2.1% dip in the market cap to $1.61 trillion.
Solana Price Prediction: SOL Nurtures The Next Breakout
As Bitcoin upholds the support at $41,000, Solana price is equally rebounding from its nearest buyer congestion highlighted by the green band around $65 on the four-hour chart.
Traders should be on the lookout for a break above the upper ascending trendline. Holding above this level would signal that SOL price is about to resume the uptrend.
Although the Moving Average Convergence Divergence (MACD) indicator is below the neutral zone, a buy signal may appear soon. This bullish crossover compelling traders and investors to consider buying the dip would manifest with the MACD line in blue crossing above the signal line in red.
The momentum indicator would also change the direction upwards as part of the uptrend’s reinforcement.
For that reason, traders may want to enter long positions above the trendline. Extremely conservative investors could wait until Solana price rises above the next hurdles presented by the 50 Exponential Moving Average (EMA) (in red) and the 21 EMA (in blue) before activating their buy orders.
Key milestones in the recovery expected this week include breaking above $70, $72 and closing the distance to $80.
After dropping from the previous high of 76, the Relative Strength Index (RSI) is rising again from lows reached at 36. Although not yet oversold, the flush drop seems to have attracted more holders to buy the dip in anticipation of a larger breakout while targeting not highs at $80 but above $100 before the end of December.
Recommended for you: Top Reasons Why You Should Buy Bitcoin (BTC), Shiba Inu (SHIB) In December
Solana Price Ready To Rally on US FOMC Meeting
The Federal Reserve is expected to hold the meeting on interest rates on Wednesday where bank officials are likely to keep them steady in the range between 5.25% and 5.5%.
Prior to the Federal Open Market Committee (FOMC) meeting, the Consumer Price Index (CPI) data showed that inflation eased further in November.
According to the data, the CPI, which is a closely monitored inflation gauge increased marginally by 0.1% in November and was up 3.1% from a year ago.
Investors see the easing inflation as fuel for the crypto market rally, especially for Bitcoin and other majors like Ethereum and Solana.
According to a post on X by Caleb Franzen, the founder of Cubic Analytics, “Disinflation is in full force and the latest round of CPI data for November 2023 is further proof that the trend is intact.”
Therefore, the crypto market including Solana may be taking a breather now, but the long-term trend remains bullish bolstered by disinflation.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/solana-price-prediction-sol-plunges-7-ahead-of-fed-meeting-on-interest-rates-whats-next/