The Solana price has plunged by 8% today after the Federal Reserve held interest rates steady yesterday.
SOL is now sitting at $169, which represents a 0.4% loss in a week but a 15% gain in a month.
The altcoin has also risen by an impressive 600% in a year, outperforming most of its rivals.
And with the Fed’s Jerome Powell suggesting that a rate cut is coming in September, the Solana price is likely to rebound soon.
Solana Price Crashes After FOMC Bombshell: Is a Rebound Possible?
SOL may have taken a hit today, but it puts it in a prime position to make a nice recovery very soon.
Its 30-day average (orange) fell below its 200-day (blue) late last night, entering an oversold position from which it should rebound eventually.
Source: TradingView
Similarly, SOL’s relative strength index (purple) fellow as low as 20 early this morning, a level that can’t get any lower.
What’s interesting is that the Solana price bounced from its medium-term support level (green), having fallen to a point where new buyers couldn’t resist the temptation to pounce.
And it’s worth remembering that Solana fell yesterday only as the result of news that will have very short-lived negative effects.
As mentioned above, the FOMC met yesterday and decided to keep rates in the 5%-5.25% range.
This came as a disappointment to many traders, yet the Fed’s chair, Jerome Powell, did suggest that positive economic data will lead it to reduce rates in September.
When the entire crypto mc touches $4T, I expect Solana to have at least 10 percent dominance.
This would mean a $400B mc for SOL and a price target of at least $800.
— Madhatt3r (@pokerchessman) August 1, 2024
More generally, many traders believe that SOL is well below where it will be in the near and more distant future.
Its strength continues to reside with the fact that the Solana blockchain is the network for meme tokens, with more new coins launching on Solana than on any other platform.
Of course, it’s not clear how long the love for meme coins will last, but their proliferation on Solana nonetheless underlines the latter’s credentials as a highly scalable and accessible blockchain network.
It therefore bodes very well for Solana’s future, with the Solana price likely to return to $200 by the start of Q4.
A bull run, perhaps spearheaded by rate cuts, could then see it reach $250 by the end of December.
New Meme Tokens Have Strong Potential
Solana is likely to remain one of the strongest alts in the market for some time, yet other, newer coins are also lining up to perform well in the coming months.
One very new token with lots of promise is The Meme Games (MGMES), an ERC-20 cryptocurrency that has raised more than $300,000 in its ongoing presale.
The Meme Games is exciting because of its social gambling element, with holders able to stake bets (in MGMES) on automated competitions between meme characters.
Holders who stake memes that win will gain a 10% bonus on top of their standard staking rewards, something which could make MGMES a very profitable token to hold.
Not only will bonus staking rewards incentivize ownership, but the competitive and social aspect of betting will help grow the coin’s community rapidly.
Indeed, The Meme Games’ official X account now reaches over 17,000 followers, which is massive for such a new token.
MGMES also has solid tokenomics, with a capped supply of 2.024 billion, which could make it deflationary over time.
38% of this total will go to the presale, with 10% going to staking and 9.3% going to games winnings.
This makes it highly decentralized for a meme coin, with investors able to join its sale by visiting the official Meme Games website.
They can buy MGMES at a cost of $0.0091 per token, a price that may end up seeming very cheap once the token lists in the next couple of months.
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