Solana has experienced an upward trajectory in the past few days and investors have been keenly watching the crypto comeback. SOL has surged to a high of $22.60, the highest level since 23rd March this year. It has jumped over 30% from its lowest level in March.
Cryptocurrency revival
It is noteworthy that Solana’s upsurge has coincides with the resurgence of the crypto market. Overnight, Bitcoin surged above $30,000, as mentioned in this article.
The main catalyst for this crypto rally is the perception that the Federal Reserve is going to end its hiking cycle. Analysts anticipate that the bank will hike interest rates by 25 basis points in May and then maintain them at an elevated level for some time.
Some experts anticipate that the bank will then start cutting interest rates later this year or in 2024. As a result, the change in monetary policy will draw more people back to risky assets such as cryptocurrencies and stocks.
The other reason behind Solana and other cryptos’ rise is the upcoming bank earnings season that will commence on Friday. It is expected that the major banks such as Bank of America and JP Morgan had a good quarter as deposits increased.
Nevertheless, for many regional banks, there is a probability that their businesses slackened after the collapse of Silicon Valley Bank and Signature Bank. During the banking crisis, we observed cryptocurrencies and gold do well as traders took them as safe havens.
In the meantime, Solana seems to be gaining traction in the past few weeks. The most recent major news was that Render Network decided to migrate to the network. This is an important development since Render is one of the leading projects in the industry. Helium, a blockchain broadband project has also shifted to Solana.
Solana’s DeFi ecosystem is also healing. Its total value locked (TVL) in DeFi has grown to S14.1 million from its year-to-date low of S11.8 million.
Solana price prediction
The 4H chart indicates that the SOL price has been in a bullish trend in the past few days. It managed to move above the significant resistance at $21.66, the highest point since 30th March. The token has soared above the 25-period an 50-period moving averages while the MACD has climbed above the neutral point.
As a result, there is a likelihood that the coin will keep rising as buyers target the next resistance level at $25.
How to buy Solana
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