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 11^th 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.