Solana’s price plunged 8% today, now at $169, after the Federal Reserve decided to hold interest rates steady. Despite this dip, SOL has gained 15% in a month and an impressive 600% over the past year.
Solana Price Crashes After FOMC Bombshell: Is a Rebound Possible?
SOL’s recent drop positions it for a potential recovery. Its 30-day average fell below its 200-day average, indicating an oversold position. The RSI also hit a low of 20, suggesting a rebound is imminent.
More generally, many traders believe that SOL is well below where it will be in the near and more distant future.
When the entire crypto mc touches $4T, I expect Solana to have at least 10 percent dominance.
— Madhatt3r (@pokerchessman) August 1, 2024
This would mean a $400B mc for SOL and a price target of at least $800.
Market Dynamics and Future Projections
The Fed’s unchanged rate decision disappointed traders, but Chair Jerome Powell hinted at possible rate cuts in September. Solana’s strength lies in its blockchain’s popularity for meme tokens, which underscores its scalability and accessibility. Traders are optimistic, with projections for SOL to reach $200 by Q4 and potentially $250 by year-end.
