Solana (SOL), currently the fifth-largest cryptocurrency by market cap, has been showing a similar pattern to Bitcoin’s (BTC) recent recovery, displaying a positive trajectory over the past few weeks.
Friday’s price surge came on the back of macroeconomic positives from the U.S. Federal Reserve, which had a positive impact on the broader cryptocurrency market.
The weekly gain was 7% driven by economic news.
In the past 24 hours, SOL prices have surged by nearly 4%, and are up 7% over the past week. The rally comes after SOL fell to the $110 mark on August 5.
Back then, adverse economic news hit risk assets and triggered turmoil in the overall market. Unlike the negative economic backdrop experienced previously, the recent situation has improved after a striking statement from Federal Reserve Chairman Jerome Powell.
Powell hinted at the possibility of a rate cut in September in his speech earlier today. Although the Fed did not specify the extent of the rate cut, Powell emphasized that the Fed is ready to adjust its policies to protect the job market from further deterioration and ensure a smooth transition of the economy.
"Now is the time to adjust policy," Powell said at the Kansas City Fed's annual conference in Jackson Hole, Wyoming. He stressed the need for clarity in the direction of policy adjustments, noting that the timing and size of rate cuts will depend on incoming data, changing economic forecasts and risk assessments.
Solana Price Prediction
The market’s reaction to Powell’s comments was evident, with Bitcoin surging to the $63,000 mark at the time of writing. Ethereum (ETH) also rose 4.4% to $2,730, its highest level since late July.
Additionally, recent observations by cryptocurrency analyst Ari Martinez suggest that Solana may be forming an Adam and Eve pattern, suggesting that if SOL manages to break through this resistance level, its price could surge to $164.
If a successful breakout occurs, the price of SOL could surge by a massive 33% to $220. If this prediction comes true, the price of SOL would be just below the all-time high of $259 reached during the 2021 bull run, which peaked in November of that year.
This expected surge would also take SOL well above its yearly high of $210 set five months ago. However, in the short term, SOL price must first overcome resistance at $151, which has been holding the coin back since August 11.
A breakout of this level would favor the coin to retest and consolidate above the next major resistance in the $161 region.
