Solana (SOL), currently ranked as the fifth largest cryptocurrency by market capitalization, has been mirroring Bitcoin’s (BTC) recent recovery patterns, exhibiting a positive trajectory over the past couple of weeks.
The latest price spike on Friday follows encouraging macroeconomic developments from the US Federal Reserve, which have positively impacted the broader cryptocurrency market. In the last 24-hour window, SOL has surged by nearly 4%, showcasing a 7% uptick over the past week. This rebound comes after SOL plummeted to the $110 mark on August 5, marked by overall market turbulence triggered by adverse economic news affecting risk assets.
Contrary to the negative economic backdrop previously experienced, the situation has recently improved due to a noteworthy statement by Fed Chair Jerome Powell. In a speech delivered earlier today, Powell hinted at the likelihood of an interest rate cut by the central bank in September. While specifics regarding the magnitude of this potential move were not explicitly disclosed, Powell emphasized the Fed’s readiness to adjust policies to safeguard the job market from further deterioration and ensure a smooth economic transition.
“The time has come for policy to adjust,” Powell stated during the Kansas City Fed’s annual conference in Jackson Hole, Wyoming. He highlighted the clarity of the direction for policy adjustments, noting that the timing and scale of rate cuts would hinge on incoming data, evolving economic forecasts, and risk evaluations.
The market’s response to Powell’s statements has been significant, with Bitcoin surging to the $63,000 mark at the time of reporting. Additionally, Ethereum (ETH) has seen a 4.4% rise to reach the $2,730 level, heights not observed since the end of July.
Moreover, crypto analyst Ali Martinez has observed that Solana may be forming an Adam & Eve pattern, suggesting a potential surge towards $164 if SOL manages to breach this resistance level. A successful breakthrough could see a substantial 33% increase towards $220. If this projection materializes, SOL’s price would approach its previous all-time high of $259 recorded during the 2021 bull run, which peaked in November of that year.
This anticipated spike would also place SOL well above its annual high of $210, reached five months ago. In the near term, the SOL price must first overcome the $151 resistance wall that has prevented the token from moving higher since August 11.
Should the price break through this level, it would favorably position the token to potentially retest and consolidate above its next major resistance at the $161 zone. The daily chart shows SOL’s price trending upwards.
 mirrors Bitcoin’s recovery, surging 7% in a week. Fed’s rate cut hints boost crypto market. Analyst sees potential for SOL to reach $220.){kind=link}