Solana (SOLUSD) price has seen exponential growth in 2023. Since the start of the year, SOL crypto has surged by more than 135%, which makes it one of the best-performing cryptocurrencies of this year. However, after explosive growth in the first two months of the year, the price has been showing weakness for the past few weeks.
On Wednesday, Solana crypto is trading at $22.3 after losing 1.07% till the start of the London session. Bitcoin and Ethereum are also trading sideways after showing minor losses. BTC is still fondling with the $28,000 resistance, which is its highest level in the last nine months.
Solana Crypto To Remain Volatile This Week
Cryptocurrencies are having the most volatile month of the year as the failure of multiple banks has drastically affected the liquidity dynamics of the market. Bitcoin price has been the biggest gainer of the current banking crisis as its price is up 40% in just two weeks. Most other altcoins like SOL crypto and Ethereum are still lagging in the positive price action as the investors await the FOMC meeting.
Today’s FOMC meeting will conclude with the decision on interest rates and keep the Solana price in check. Many analysts are expecting another 25 basis points hike. It is also likely that the Federal Reserve will pause the rate hikes considering the recent bank failures in the US. However, considering the hawkish tone of the Fed in the last FOMC minutes, another rate hike seems to be more probable.
Solana Price Is Retesting A Key Resistance
As shown in the following chart, the SOLUSD chart has formed a symmetrical wedge pattern. It is also visible on the chart that the price has failed to break out of the downward trendline despite multiple attempts. Furthermore, the price is also retesting the 200-day moving average, which currently lies at $22.60.
This is the most critical level and line in the sand for many traders. If today’s DOMC meeting results in a pause in rate hikes, then I expect the price to break above $22.6. This will make Solana price prediction very bullish, and the price can retest the November high of $38.79. On the other hand, a 50 bps hike can send the price toward its March 2023 low of $16.