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Solana price breaks out of bearish pattern 22

Solana price breaks out of bearish pattern, bull trap going into the weekend?

Prior to the important Jackson Hole Symposium, the price of solana trades higher on light volume.
Going into Friday morning, the SOL price may manage to gain a little.
Be prepared for a significant letdown that can push cryptocurrencies lower all weekend long to new lows on Monday.

Investors and dealers are beginning to reduce the traded volume prior to the significant catalyst event on Friday afternoon, which is allowing forces from the global markets to take control of the Solana (SOL) price. Jerome Powell will deliver one of the most significant Fed remarks at the Jackson Hole Symposium, and the limited liquidity presents a narrow window of opportunity for prices to move higher.

The Fed is nowhere close finishing its aggressive tightening cycle, and losses are imminent for cryptocurrencies like Solana, so traders will need to exit those positions before the statement takes place. This will dampen the optimistic atmosphere in the markets. Solana price

The price of SOL can drop by 30% in a couple of minutes.

Solana price

With gains of more than 3% accrued throughout the European trading session, the price of solana is currently trading higher. SOL price is achieving this by exiting the bearish triangle that was discovered on Wednesday and appeared ready to break below the monthly pivot at $34.

Instead, bears are beginning to feel some pressure and may anticipate another upward bounce toward $40, but the time horizon is very short.

Markets are beginning to anticipate that the Fed speech on Friday will be dovish, in which Jerome Powell will commit to a less aggressive stance and perhaps even indicate that interest rate cuts are likely to begin, which could lay the stage for a highly unfavourable surprise for SOL price.

If Powell chooses not to make such remarks, sentiment will be shattered, traders will want to flee, and the sell-side will blow up and wreck price movement. That could only indicate one thing for the price of Solana: a decline in just a few minutes following his remarks towards $26 and potentially even breaking below that below $24, printing over 30% of losses. Solana price

The market’s response to the statement will be fairly binary, with the consequence mentioned in the paragraph above being negative. For instance, Powell declaring that the Fed has accomplished enough for the time being and suggesting a pause or slowdown in the pace of rate hikes with rate decreases anticipated at the start of 2023 would be a favourable outcome. Solana price

The scenario that experienced traders will have planned for in this circumstance is for the price of Solana to spike higher above $40 and trade back above the monthly pivot, the orange ascending trend line, and the 55-day SMA, with a follow-through given towards $58.84 by the end of the following week. Solana price

The market’s response to the statement will be fairly binary, with the consequence mentioned in the paragraph above being negative. For instance, Powell declaring that the Fed has accomplished enough for the time being and suggesting a pause or slowdown in the pace of rate hikes with rate decreases anticipated at the start of 2023 would be a favourable outcome. Solana price

The scenario that experienced traders will have planned for in this circumstance is for the price of Solana to spike higher above $40 and trade back above the monthly pivot, the orange ascending trend line, and the 55-day SMA, with a follow-through given towards $58.84 by the end of the following week. Solana price

The scenario that experienced traders will have planned for in this circumstance is for the price of Solana to spike higher above $40 and trade back above the monthly pivot, the orange ascending trend line, and the 55-day SMA, with a follow-through given towards $58.84 by the end of the following week. Solana price

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