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Solana Price: Investors Seem Jittery as Focus Shifts to Fed Minutes
Solana price has been on a downward trend for two consecutive days as investors shift their focus to FOMC meeting minutes. SOL has slipped by more than 7% in the past 24 hours, while its total market cap declined by 7.37%. The total volume of the altcoin traded over the last day has inched more than 14% lower. At the time of writing, Solana was trading 4% lower at $23.97.
SOL Outlook
Solana has been among the best-performing cryptocurrencies since the beginning of the new year. The altcoin has climbed 140.82% in the year to date as it quickly works on recovering from the collapse of FTX and as developers keep building on it.
Available market data shows that Solana has been outperforming most digital assets this year amid a wider market recovery. The digital asset currently ranks as the 11th largest cryptocurrency by market capitalization, above Polkadot but below the meme-inspired crypto Dogecoin.
While Solana has already recovered a staggering 180% from its late-2022 lows, the altcoin remains about 90% below its 2021 highs. The FTX collapse late last year triggered a massive outflow of capital from Solana’s Decentralized Finance ecosystem. The collapse may still be significantly weighing on the Solana price despite the strong recovery.
The overall cryptocurrency market has cooled its recent rally amid growing macro headwinds such as the Fed’s meeting minutes. The market has been in jitters amid rumors from Fed policymakers about a possible return to 50% interest rate hikes. Increased interest rates are usually bad for riskier assets like cryptocurrencies.
Statistics by Coinmarketcap show that the global crypto market cap has decreased by 3.17% over the last day to $1.09 trillion. On the other hand, the total crypto market volume has increased by 11% over the past 24 hours.
Therefore, the looming macro headwinds could bring a sense of uncertainty in the crypto market, prompting traders to be cautious. As such, the Solana price might struggle to find direction.
Solana Price Analysis
The 4-hour chart shows that the Solana price has been on a downward trend for the past two days as markets focus on the FOMC minutes. The altcoin is trading below and slightly above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has slipped slightly below the overbought zone.
Therefore, the SOL price is likely to pull back further in the short term before staging a correction. If this happens, the price might drop to find support at $22.20 before moving higher. The next resistance level to watch will be $26.80.
Bitcoin price has been hovering above its highest level since June 2022 over the past few hours. The largest cryptocurrency by market cap has jumped by 28.30% in the past week, while its year-to-date price inches higher to 70.63%. Bitcoin’s total market cap has increased by 4.77% over the last 24 hours to $547.7 billion, while the total volume of the coin traded rose by 50%.
BTC Skyrockets
Bitcoin price was rallying on Monday as most altcoins slumped, led by the largest altcoin by market cap, Ethereum. The global crypto market cap has increased 2.49% over the last day to $1.18 trillion, while the total crypto market volume jumped 34.88%. Bitcoin’s dominance inched 0.98% over the past 24 hours to 46.34%, its highest level since June 2022.
The recent global banking crisis in which three major banks in the US were closed within days has pushed the BTC price higher. Silvergate Capital, Signature Bank, and Silicon Valley Bank recently disclosed operational difficulties, prompting regulators to shut them down.
Switzerland’s largest banking institution, UBS, announced on Sunday that it had entered a merger deal with its embattled rival Credit Suisse. UBS announced that it would buy its rival for $3.25 billion, with Swiss regulators playing a key role in the ideal. According to the Swiss National Bank, the merger will secure financial stability and protect the Swiss economy.
Bitcoin reacted positively to the news, cruising…
Solana price joined in on the recent rally in the global cryptocurrency market, jumping nearly 17% in the past week. Solana has made substantial gains this year, climbing 102% in its year-to-date price. SOL ranks as the 11th largest cryptocurrency after Binance USD and ahead of Polkadot. Despite the altcoin’s recent rally, the total volume of the coin traded has continued to dwindle.
Fundamentals
Solana price was trading slightly higher on Friday as Bitcoin and other altcoins extended their rally despite the bank contagion fears weighing on the markets. Bitcoin and Ethereum have been leading the recent rally in the market, jumping more than 30% and 20% in the past week, respectively.
Investors have welcomed the resilient crypto prices amid the recent crisis in the banking sector this week. The week started with the collapse of Signature Bank and Silicon Valley Bank on Sunday until the focus shifted to Credit Suisse and First Republic Bank. Traders have been digesting the fate of Credit Suisse even after the bank said that it would borrow up to 50 billion Swiss Francs from the Swiss National Bank.
Several analysts have linked the recent rally in the crypto market to lingering bank worries. Even so, crypto prices are heavily influenced by inflation and the Federal Reserve interest rate hikes. According to analysts, the recent decline in banking stocks points to the vulnerability of traditional institutions, raising liquidity concerns…
Bitcoin price has been on a 4-day consecutive rally, jumping more than 29% since Friday when Silicon Valley Bank collapsed. Despite the tough year so far, BTC has been among the best-performing cryptocurrencies, jumping 57% in the year to date. At the time of writing, Bitcoin was trading 7% higher at $25,820.
BTC is Outperforming
Bitcoin price has been rallying in its recent trading sessions despite the collapse of the Silicon Valley Bank last week on Friday. The coin’s recent rally has been largely boosted by the current bullish momentum in the markets. Bitcoin’s coin market cap has increased by more than 7% in the past 24 hours, while the total volume of the coin traded slipped 8%.
Data by Coinmarketcap shows that the global crypto market cap has increased further by 5.19% to $1.13 trillion, while the total crypto market volume has decreased by 15.96% over the same period. Bitcoin’s dominance has increased by 0.83% over the last day to 44.24%.
The rally in the crypto market has been intricately linked to the recent US Consumer Price Index (CPI) data. The Bureau of Labor Statistics (BLS) reported a 0.4% increase in inflation in February from January, matching consensus estimates by analysts.
The CPI reading declined to 6% year on year, down from 6.4% in January, in line with market expectations. The core CPI, which excludes volatile food and energy prices, came in at…
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