The Solana price has been consolidating for the past few months as concerns about the US economy grow. The altcoin has crashed more than 82% from its highest level this year in January. The coin has plunged more than 8% in the past week while the total volume of the coin traded in the past 24 hours crashed by more than 6%. It is the 9th most valued cryptocurrency in the world, after Cardano.
Crypto Market Outlook
According to data by CoinMarketCap, the overall crypto market has been under intense pressure for the past few days ahead of US economic data. In the last 24 hours, the total crypto market volume has plunged more than 12%.
The slump in Bitcoin price has played a huge role in the bearish outlook of the crypto market. Bitcoin’s dominance has decreased to 39.75% over the day. Being the world’s largest digital asset, BTC’s performance weighs heavily on the performance of the overall crypto market.
Just like other cryptocurrencies, the hiked interest rates have seen the Solana price stumble. The US Central Bank has already increased its interest rates by 300 basis points. The Fed is likely to continue with its aggressive policy-tightening measures in the coming months. As such, the SOL price is likely to continue struggling.
Traders are keeping an eye on the US economic data scheduled for release later in the day. The US Bureau of Labor Statistics is set to release the US monthly Producer Price Index (PPI) for September.
Solana Price Forecast
The 4-hour chart shows that the Solana price has been range-bound for the past few weeks. The coin is trading below the 25-day and 50-day moving averages. Its RSI is weak at 33, which is close to the oversold region.
Therefore, the SOL price is likely to continue trading in a tight range between $30 and $35. However, a mover above or below these ranges will invalidate my prediction.