Solana extended the losses into a major support
zone recently as fears of potential US strikes on Iran weighed on the crypto
market. Those fears proved to be unfounded, and we’ve started to see risk
sentiment improve as oil prices eased.
In the bigger picture, nothing has changed, with
the Middle East crisis continuing to put upward pressure on inflation while
weighing on global growth. The Federal Reserve is also being forced to maintain
a tightening bias, while the upcoming US midterm elections add another layer of
uncertainty. These headwinds are likely to limit any major rally in Solana.
This week, the focus will be on Wednesday’s FOMC
decision and further developments in the Middle East.
The Fed is widely expected to keep interest
rates unchanged, so a surprise rate hike would likely trigger a sharp selloff
in Solana. We won’t get the Dot Plot at this meeting, so the attention will be
on Fed Chair Warsh. Given his reluctance to provide forward guidance, though, he’s
unlikely to say much, but traders will be watching closely for any hawkish
surprises.
SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that Solanabounced near the key support around the 97.00 level. We can expect
the buyers to continue to step in around the support, with a defined risk below
it, to position for a rally into the 148.00 level. The sellers, on the other
hand, will want to see the price breaking lower to increase the bearish bets
into the major upward trendline next.
SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have a downward trendline
defining the bearish structure. If we get a pullback into the trendline, we can
expect the sellers to lean on it, with a defined risk above it, to position for
a drop back into the 97.00 support. The buyers, on the other hand, will want to
see the price breaking higher to increase the bullish bets into the 113.00
resistance next.
SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we
have a minor falling channel defining the current price action. The sellers
will likely continue to lean on the upper bound of the channel, with a defined
risk above it, to keep targeting new lows. The buyers, on the other hand, will
look for a break higher to pile in for a rally into the major downward trendline
next. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Tomorrow we get the US Consumer Confidence report. On Wednesday, we have the
FOMC rate decision. On Thursday, we get the US GDP report, the US PCE and the
latest US Jobless Claims figures. On Friday, we conclude the week with the US
Employment Cost Index.
This article was written by Giuseppe Dellamotta at investinglive.com.
