- Solana prices were trading slightly higher ahead of the key Jackson Hole Symposium.
- SOL price could add to gains on Friday morning.
- Expect a major disappointment on Monday that will drag cryptocurrencies lower to new lows for the week.
The price of Solana (SOL) was taken over by global market forces as investors and traders began to reduce trading volume on Friday afternoon ahead of a major catalyst event. With one of the Fed’s most important statements made by Jerome Powell at the Jackson Hole Symposium, low liquidity offers little opportunity to sell higher.
Warnings should be issued as traders should exit positions ahead of the announcement as the Fed is far from nearing the end of its aggressive tightening cycle, dampening positive sentiment. in markets with losing hands in cryptocurrencies, incl. Solana.
The price of Solana can drop by 30% in minutes
Solana prices traded higher, with more than 3% gains recorded during the European trading session. In this way, the price of SOL has broken out of the bearish triangle identified on Wednesday and appears to have broken below the monthly pivot at $34. Instead, they are slightly less bearish and could see another rise above $40, but the time horizon is very short. The price of SOL could be a very negative surprise as markets begin to anticipate the possibility of a dovish Fed speech on Friday afternoon, where Jerome Powell has committed to a less hawkish approach is about to start.
If Powell avoids comment, sentiment will be crushed and traders will want to go on a selling spree to drive the price action into the ground. What this means for Solana’s price: a falling knife just minutes after his comments at $26 and possibly a drop to $24, printing 30% loss
With the statement, the market reaction will be very binary, within the paragraph above the negative result. On a positive note, for example, Powell said the Fed has done enough so far and announced a halt or delay in the pace of rate hikes, with a rate cut seen in early 2023. Experienced traders write these scenarios and plan, in this case, with a Solana price rally above $40 to sell back above the monthly pivot, the orange uptrend line and the 55-day SMA, reaching $58.84 by the end of the year. next week.
