Solana price has been hovering around the $24 mark for the past few days, extending last week’s losses. As of the time of writing, the altcoin was trading 7.20% lower at $24.22. Despite its recent dip, Solana has been among the best performers in the crypto market since the beginning of the new year. The digital asset currently ranks as the 11th largest cryptocurrency.
Solana has been among the top-performing cryptocurrencies this year, jumping 144.73% in its year-to-date price. The coin has climbed by more than 170% from its lowest level in December but remains 82% below its highest level in March last year.
SOL’s price has been hovering above its pre-FTX levels on the backdrop of increased transactions in its ecosystem. The total volume of the altcoin traded over the last day has increased by more than 207%. However, its total market cap has slipped in the past 24 hours.
Investors have shifted their focus to the Federal Reserve’s interest rate decision, which is set to be announced later on Wednesday. Analysts expect a 0.25% hike in the Fed’s interest rate to 4.75%. A hike in interest rates will negatively impact risk-on assets such as cryptocurrencies.
As such, if the market sentiment points to a bearish turn, the Solana price will be susceptible to further decline.
Solana Price Prediction
The 4-hour chart shows that the Solana price has been trading sideways for the past few days, invalidating its month-long upsurge. The digital asset has moved slightly above and slightly below the 50-day and 100-day moving averages, respectively. Its Relative Strength Index (RSI) has slipped into the neutral zone.
Therefore, a bearish market cue will see the Solana price slip further to face the immediate support level at $22.20. On the flip side, a move past the resistance level at $27.10 will invalidate the bearish thesis.