The recent CPI print had the potential to create volatility in the markets, with speculation of a drop in rates that could have boosted the prices of cryptocurrencies like Bitcoin and Solana. However, the CPI rates turned out to be hotter than expected, leading to a cooling off in the markets.
Many are wondering how long the price of Solana (SOL) will remain consolidated below $145 and if it can surpass $150 in October. Despite the lack of momentum in SOL’s price, the Solana platform continues to attract significant liquidity. The platform has been seeing a surge in transactions and outperforming even Ethereum, which is a hub for DeFi and NFTs.
The recent popularity of memecoins, sparked by the PEPE price rally, has led to the launch of numerous memecoins on the Solana chain. This has contributed to an increase in trading volume on the chain. The question now is how long SOL will stay below $150 and whether it can climb back above $160 in the future.
Looking at the weekly chart of Solana, it appears that the price could continue to consolidate within a symmetrical triangle pattern. While the MACD indicates a decrease in selling pressure, the on-balance volume (OBV) shows a rejection from the upper threshold. This suggests that traders are optimistic about a price rally but are struggling to generate enough buying pressure. As a result, the price may remain within the current range, with support at $133.
The upper target for SOL may be limited to a range between $165 and $168, potentially dropping back down to $160. However, after a period of compression, the Solana price could break out of the range and start a new upward trend, possibly in the second half of the last quarter of 2024. This indicates that there is still potential for growth in the price of Solana in the coming months.