Current trend

This week, the SOL/USD pair has completed a correction that began in the second half of May and has now reached three-week highs around 175.00 (Murrey level [6/8]).

Two main factors contribute to the uptrend: the increased likelihood of the start of interest rate cuts by the US Federal Reserve, as well as the continued popularity of memecoins on the Solana blockchain. Over the past few days, the market has received several signals about the possibility of a correction in US monetary policy: the April core index of private consumption expenditures decreased from 0.3% to 0.2%, and the Manufacturing PMI decreased from 49.2 points to 48.7 points. Thus, signs of a further slowdown in inflation and economic growth have been demonstrated, which may allow officials to begin reducing the cost of borrowing as early as September. In this case, the US currency will cease to receive support, and the positions of alternative assets will move to an uptrend.

In addition, the Solana network is becoming increasingly popular among developers and users. According to the calculations of The Block, 455.0 thousand new coins were created in May, which significantly exceeds the volume of competitors. Experts note that high bandwidth and low commissions make the creation of new projects relatively cheap, however, most of them are memecoins, the largest of which are dogwifhat (WIF) and Bonk (BONK), and it is still unclear whether Solana will be able to become as popular for other types of digital currencies.

Support and resistance

Technically, the price has reached 175.00 (Murrey level [6/8]), the breakout of which will allow quotes to continue rising to the levels of 187.50 (Murrey level [7/8]) and 200.00 (Murrey level [8/8], the area of April highs). The key mark for the bears is the 157.40 mark (23.6% Fibonacci retracement), with a breakdown of which downward dynamics can strengthen to the targets of 137.50 (Murrey level [3/8]) and 125.00 (Murrey level [2/8]), but this scenario seems less likely.

Technical indicators confirm the possibility of continued growth: Bollinger Bands and Stochastic are reversing up, MACD is stable in the positive zone.

Resistance levels: 175.00, 187.50, 200.00.

Support levels: 157.40, 137.50, 125.00.

Trading tips

Long positions can be opened above the 175.00 mark with targets of 187.50, 200.00 and stop-loss around 165.00. Implementation period: 5–7 days.

Short positions can be opened below the level of 157.40 with targets of 137.50, 125.00 and stop-loss around 167.00.