The start of July month wasn’t that favorable across the crypto market. While Bitcoin price lost its $23,000 level, Ethereum gave up on the $1,500 mark. The same was followed by Solana after the currency declined to $34.77 on July 26, 2022.
However, the ninth largest cryptocurrency saw an increase in its price levels along with the Federal Reserve’s decision to increase the interest rate by 0.75% during yesterday’s FOMC meeting.
This is the second time in the year that the Federal Reserve has made a decision to raise the interest rate in order to curb the increasing inflation rate. The Fed also plans to increase the interest rate next by 2.25% and 2.5%. If this happens then this will be the highest rate surge since 2018 and in turn, it is expected to crash loans related to consumers and commercials.
Meanwhile, the crypto market has reacted bullishly to the news as Bitcoin reclaimed the $23,000 price level and Ethereum saw its price levels reaching the $1600 mark. Next, even Solana (SOL) managed to trade above $40 and waiting for the bulls to capture $46.72
Solana Price Enters Wedge Pattern
The below chart depicts Solana’s falling wedge pattern after the currency failed to stick above $46.78. However, this kind of pattern is considered highly bullish marking an end to the bear control. Just not that, the pattern also acts as a pathway toward recovery.
Now, the Ethereum competitor is already trading above past the upper marking in the pattern. The next thing that stands as an obstacle for the currency is the pressure around the 50-4hr Simple Moving Average (SMA). If the coin manages to close the 4hr trading above this level, the currency’s stability will be confirmed and can easily hit the target of the $50 price level.