Solana price has remained range-bound ahead of the Fed interest rate decision scheduled for Wednesday. As at the time of writing, the altcoin was at $23.81 after failing to break the resistance at $26.00 at the beginning of the week.
Fundamentals
At the beginning of the week, there appeared to be an increase in buyers as a surge in risk appetite boosted the broader crypto industry. However, solana failed to attract enough buyers to break the resistance around $26.00.
While investors appear optimistic over the recovery of the crypto industry in 2023, the immediate focus remains on the Fed interest rate decision set for release on Wednesday. Analysts expect the central bank to ease their interest rate hikes for the second time in a row by approving a 25 basis points increase.
On the one hand, an environment of high interest rates is bearish for risk assets. Even so, the expected easing may be a confirmation that inflation has indeed peaked and that the Fed will loosen its aggressive monetary policy in coming months. This argument, coupled with the persistent concerns over a recession, are the reasoning behind my forecast for solana’s curbed gains.
Solana price prediction
As is often the case, solana price’s movements in recent weeks have largely been similar to those of other major cryptocurrencies. For about two weeks now, SOL/USD has been on range-bound trading will the highly anticipated catalyst being the Fed interest rate decision.
Even with the subtle movements, the altcoin has remained above the 25 and 50-day exponential moving averages. While this is a bullish signal, I am of the opinion that solana price will be subject to curbed gains in the short term.
In the immediate term, the crypto will likely remain within the current range of between the resistance zone of 30 and the 25-day EMA at 22. Subsequently, a hawkish Fed may push it lower to the 50-day EMA at 19.61.
Even with the probable decline, I expect solana price to continue trading above 15.45 amid optimism that an improvement in risk appetite will yield further recovery of the crypto industry. However, 32.50 may remain a steady resistance zone for the altcoin in the short term. This as investors employ caution over the probability of a recession.
