The Solana price has bounced back after it dropped to $20 this week. The coin has risen by more than 53% from its lowest level this week. It is still 47% below the highest point in May and has a market capitalization of more than $8.2 billion.
What happened? Solana has staged a strong recovery as investors react to the relatively dovish statement by Jerome Powell who was testifying before Congress. Unlike the hawkish statement he delivered last week, he said that the bank will continue supporting the economy for as long as was needed.
Investors interpreted this as a way of saying that the bank will continue the asset-purchase program. Solana and other coins are also rising as investors predict that the coins have bottomed after the recent weakness. So, what next for SOL prices?
Solana price prediction
The four-hour chart shows that the SOL price broke out below the important support at $33.6 last week. It then dropped and retested the important support level at $20. It is also slightly above the 23.6% Fibonacci retracement level. The downward trend is also being supported by the 25-day and 50-day exponential moving averages.
Therefore, I believe that the downward trend remains intact so long as the price is below the two moving averages. Also, I suspect that this rally is part of a break and retest strategy, meaning that the price will resume the downward trend. However, a move above the 38.2% retracement at $34 will invalidate the bearish prediction.
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SOL price chart
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