Here’s why Solana price just made a bullish breakout

Here’s why Solana price just made a bullish breakout

Solana price has made a strong bullish comeback in the past few days as investors focus on the great crypto comeback. SOL jumped to a high of $22.60, the highest level since March 23 of this year. It has soared by over 30% from the lowest level in March.

Crypto comeback continues

It is worth noting that Solana’s comeback has coincided with the return of the raging bull in the crypto industry. Overnight, Bitcoin surged above $30,000, as we wrote in this article.

The main driving force for this crypto rally is the feeling that the Federal Reserve is about to end its hiking cycle. Analysts believe that the bank will hike interest rates by 25 basis points in May and then maintain them at an elevated level for a while.

Some analysts expect that the bank will then start cutting interest rates later this year or in 2024. As a result, the change in monetary policy will send more people back to risky assets like cryptocurrencies and stocks.

The other reason why Solana and other cryptocurrencies are rising is the upcoming bank earnings season that will start on Friday. Expectations are that many large banks like Bank of America and JP Morgan had a good quarter as deposits rose.

However, for many regional banks, there is a likelihood that their businesses slowed after the collapse of Silicon Valley Bank and Signature Bank. During the banking crisis, we saw cryptocurrencies and gold do well as traders took them as safe havens.

Meanwhile, Solana seems to be gaining traction in the past few weeks. The most recent big news was that Render Network decided to migrate to the network. This is a notable event since Render is one of the top projects in the industry. Helium, a blockchain broadband project has also moved to Solana.

Solana’s DeFi ecosystem is also recovering. Its total value locked (TVL) in DeFi has risen to S14.1 million from its year-to-date low of S11.8 million.

Solana price prediction

The 4H chart shows that the SOL price has been in a bullish trend in the past few days. It managed to move above the important resistance at $21.66, the highest point since March 30th. The coin has jumped above the 25-period an 50-period moving averages while the MACD has jumped above the neutral point.

Therefore, there is a likelihood that the coin will continue rising as buyers target the next resistance level at $25.

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