Solana Reaches New High for Year, Double Bottom Formation Possible


Investors in the cryptocurrency market have seen a mixed bag this year. Those who bet on the rise of Bitcoin have seen impressive returns on investment. For example, Ripple, a cryptocurrency, has seen a triple-digit increase in value so far this year due to its positive reaction to a federal court ruling that said when sold to institutions, it is a type of security. Bitcoin has seen an 80% increase over the past year due to dollar weakening and short squeezes.

Not all cryptocurrencies have rallied in the same way, however. Solana, for example, gave up the majority of its gains together with Bitcoin. Nevertheless, a short squeeze in July brought the market back to horizontal resistance at the $30 level, reaching a new yearly high and sparking optimism amongst investors.

Is a double bottom in place? For the entire year, $30 is the resistance level and the fact that it has pierced is a sign of strength. However, the second area must not be lower than the previous one. This week is a busy one for the Federal Reserve, as they are about to announce their interest rate decision. This final increase signals the end of the current tightening cycles, so it is important to not discard the idea of a second attempt in the area that provided support previously, particularly if it was successful.

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