Solana (SOL) Mimics Bitcoin's (BTC) Recovery Patterns, Aims to Reclaim All-Time High of $259

Solana (SOL), currently ranked as the fifth largest cryptocurrency by market capitalization, has been mirroring Bitcoin's (BTC) recent recovery patterns.

As the fifth-largest cryptocurrency by market capitalization, Solana (SOL) has been following closely behind Bitcoin’s (BTC) recent recovery patterns, exhibiting a positive trajectory over the past couple of weeks.

With encouraging macroeconomic developments emerging from the US Federal Reserve impacting the broader cryptocurrency market positively, SOL has seen a nearly 4% surge in the last 24-hour window and a 7% uptick over the past week. This rebound comes after SOL plummeted to the $110 mark on August 5 amid overall market turbulence triggered by adverse economic news affecting risk assets.

However, the situation has improved recently thanks to a key statement by Fed Chair Jerome Powell. In a speech delivered earlier today, Powell indicated the possibility of an interest rate cut by the central bank in September.

Although specifics regarding the magnitude of this potential move were not explicitly stated, Powell highlighted the Fed’s readiness to adjust policies to protect the job market from further deterioration and ensure a smooth economic transition.

“The time has come for policy to adjust,” Powell stated during the Kansas City Fed’s annual conference in Jackson Hole, Wyoming. He emphasized the clarity of the direction for policy adjustments, adding that the timing and scale of rate cuts would depend on incoming data, evolving economic forecasts, and risk evaluations.

The market has reacted strongly to Powell’s statements, with Bitcoin surging to around the $63,000 mark at the time of reporting. Additionally, Ethereum (ETH) has seen a 4.4% rise to reach the $2,730 level, heights not observed since the end of July.

According to crypto analyst Ali Martinez, Solana may be forming an Adam & Eve pattern, suggesting a potential surge towards $164 if SOL manages to breach this resistance level. A successful breakthrough could see a substantial 33% increase towards $220.

If this projection materializes, SOL’s price would approach its previous all-time high of $259 during the 2021 bull run, which peaked in November of that year.

This anticipated spike would also place SOL well above its annual high of $210, reached five months ago. In the near term, the SOL price must first overcome the $151 resistance wall that has prevented the token from moving higher since August 11.

Should the price break through this level, it would favorably position the token to potentially retest and consolidate above its next major resistance at the $161 zone. The daily chart shows SOL’s price trending upwards.

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