Solana price is on the verge of a bullish breakout as it slowly forms a rare chart pattern on the eight-hour chart. SOL token was trading at $145 on Wednesday morning, as bulls hope that the FOMC decision and the surging stablecoin market cap will act as good catalysts.
Solana Price Prediction as 3 Rare Patterns Form
The eight-hour chart shows that the Solana price has pulled back slowly in the past few days. It has dropped from a high of $157 on April 5 to the current $146 and formed a descending channel.
This channel happened after the coin went parabolic, soaring from $97 in April to a high of $157. Therefore, as the name suggests, it has flashed a bullish flag pattern, which leads to a strong bullish breakout.
Additionally, the flag section resembles a falling wedge, comprising two falling and converging patterns. In most cases, this pattern also leads to a surge when the two lines are about to converge.
Moreover, the Solana price exhibits an inverse head-and-shoulders pattern. This pattern comprises a head at $97 and two shoulders, with a neckline at $157.
The SOL price is likely to have a bullish breakout, with the initial target being $180. A move above that level will point to more gains, potentially to the psychological level of $200.
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Fed Decision and Stablecoin Growth
The price of Solana has numerous bullish catalysts, but the most immediate factors are the upcoming Federal Reserve interest rate decision and the growing stablecoin market cap.
A moderately dovish Fed would be a bullish catalyst for the coin because most altcoins thrive in a low-interest-rate environment.
Data shows that the amount of stablecoins in the Solana ecosystem has surged to a record high. It has moved to $13 billion, much higher than $5.7 billion, where it was in January this year. Solana had less than $2 billion worth of stablecoins annually in 2023.
USD Coin dominates the Solana network with a 77% share. Growing stablecoin growth is positive for Solana as it means more users interact with the network.
Other bullish catalysts for Solana include the potential SOL ETF, its growing meme coin ecosystem, and its high staking yield.
READ MORE: Solana Price Prediction: How High Will SOL Go with $6B in ETF Inflows?
