• Solana reached a brand new excessive for the 12 months
• A false backside may very well be in place
• All eyes are on the Federal Reserve’s rate of interest determination

Traders within the cryptocurrency market have had a combined 12 months to date. These betting on the rise of Bitcoin or Ripple have loved spectacular returns.

For instance, Ripple has delivered a triple-digit return to date within the 12 months because the cryptocurrency reacted to a constructive federal decide ruling declaring that when offered to institutional traders, Ripple is a safety.

Bitcoin is up round 80% on the 12 months, on a mixture of near-term compression and greenback weak spot.

However not all cryptocurrencies rallied like this. Take Solana, for instance. It rallied at the beginning of the 12 months with Bitcoin, however then, not like Bitcoin, it gave up most of its features.

Nonetheless, in July, a brief squeeze despatched the market again to the horizontal resistance given by the $30 degree. Though the market failed to carry above, it hit a brand new excessive for the 12 months, sparking optimism amongst traders.

Solana Chart by TradingView

Is a false backside in place?

The $30 degree has provided resistance all year long. The truth that the market broke by means of it’s a bullish signal, and it ought to come as no shock to see one other try larger.

Nonetheless, there may be one situation that should be met. That’s to say, Solana mustn’t make a brand new low.

If this isn’t the case, we will communicate of a potential double backside zone, even when the second backside is a bit of larger than the primary. Since this week the Federal Reserve of the USA is about to announce its determination on rates of interest, volatility may even enhance within the cryptocurrency market. As such, one other try on the resistance zone, which has offered help prior to now, shouldn’t be discounted, particularly if the Fed indicators that the top price of the present tightening cycle is reached with this newest hike.