Analysis

Solana made a new high for the year. A double bottom might be in place.


  • Solana made a brand new excessive for the yr
  • A double backside may be in place
  • All eyes are on the Federal Reserve’s rate of interest determination

Buyers within the cryptocurrency market have had a blended yr to this point. These betting on the rise of Bitcoin or Ripple have loved spectacular returns. 

For instance, Ripple has delivered a triple-digit return to this point within the yr, because the cryptocurrency reacted to a optimistic ruling by a federal choose saying that when bought to institutional buyers, Ripple is a safety. 

Bitcoin is up round 80% on the yr, on a mixture of short-squeezing and greenback weak point. 

However not all cryptocurrencies have rallied like that. Take Solana, as an illustration. It rallied at first of the yr along with Bitcoin, however then, not like Bitcoin, it gave up most of its features. 

However, throughout July, a brief squeeze despatched the market again to the horizontal resistance given by the $30 stage. Whereas the market failed to carry above, it did make a brand new excessive for the yr, triggering optimism amongst buyers. 

Solana chart by TradingView

Is a double backside in place?

The $30 stage supplied resistance for all the yr. The truth that the market pierced it’s a bullish signal, and one shouldn’t be stunned to see one other try larger. 

Nonetheless, there’s one situation that should maintain. That’s, Solana shouldn’t make a brand new low. 

If it doesn’t, one can speak about a potential double backside space, regardless that the second backside is a bit larger than the primary one. Given the truth that this week the Federal Reserve of america is about to announce its rate of interest determination, volatility will improve within the cryptocurrency market too. As such, one other try on the resistance space, which supplied assist again up to now, shouldn’t be discarded, particularly if the Fed indicators that the terminal fee for the present tightening cycle is reached with this ultimate hike. 

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