- Solana price has formed a triple-top top pattern on the daily chart.
- The total value locked in Solana has moved upwards in SOL terms.
Solana price drifted downwards on Wednesday as investors waited for the upcoming Federal Reserve decision and as others took profits. SOL was trading at $21.38, which was almost 18% below the highest level this year.
Solana has outperformed BTC, ETH
Solana has emerged as one of the best-performing large-cap cryptocurrencies this year as investors bet that the platform will do well after the collapse of FTX and Alameda Reserve. SOL has soared by more than 115% this year while Bitcoin and Ethereum have jumped by less than 80%.
This recovery happened as activity in Solana’s DeFi ecosystem made an improvement this year. Data shows that the DeFi TVL has jumped from the year-to-date low of 25 million SOL to almost 45 million SOL. Some of the top drivers for this rally are SPL Governance, Streamflow, and Marinade Finance.
The next key catalyst for Solana is the upcoming interest rate decision by the Federal Reserve. Analysts believe that the Fee will decide to hike interest rates by 0.25% and hint of a pause in the coming months. A pause will be important because of the ongoing risks to the economy after the collapse of several banks. The commercial real estate industry is also going through existential risks as occupancy risks jump.
Solana price prediction
Solana price jumped and found resistance at $25.72. It has struggled to move above this resistance several times since January this year. Along the way, the coin jas formed ehat looks like a triple-top pattern whose neckline is at $15.97.
Solana has also moved below the 38.2% Fibonacci retracement level. It has also moved below the 25-day and 50-day moving averages. Therefore, at this stage, the outlook of Solana is bearish unless bulls manage to push it above the triple-top level of $25.72. If this happens, the next key resistance level to watch will be at $38.8.
On the other hand, if bears prevail, we could see the coin drop to the neckline of this pattern at $15.97, which is ~27% below the current level.
