Solana jumps 10% to $161 on Powell’s dovish signal

Solana’s price has risen 10% to $161, following Jerome Powell’s hint of possible federate interest rate cuts in the forthcoming months. Crypto traders have joined the upside momentum, focusing on the possibility of interest rate cuts.

After hovering near $140 for most of the past week, SOL witnessed a significant surge, breaking through the $160 level amid the dovish Fed stance.

Jerome Powell hints at policy adjustments, driving SOL prices higher

Speaking at the Fed’s annual Jackson Hole Economic Symposium in Wyoming on August 23, the Federal Reserve Chair, Jerome Powell, touched on the need for more policy adjustments and the dwindling inflation. 

On policy adjustments, the Fed Chair hinted at potential rate cuts but did not provide specific details on the timing or extent of such cuts. He only stated that the timing and pace of rate cuts will depend on forthcoming data, the evolving outlook, and the balance of risks. 

That alone was enough to boost significant crypto markets, including Solana’s. A few hours after Powell’s speech, Solana’s price surged to over $150, and it has continued to surge to $161, representing a 10% surge in the last 24 hours.

This price surge mirrors the rising open interest and funding rates in the futures market. According to data resource Coinglass, SOL’s open interest was $2.19 billion on Aug. 24, up from $2.09 billion a day earlier. At the same time, its funding rates—calculated every eight hours—have risen to 0.0054% from 0.0028%.

Tracy Chen, portfolio manager at Brandywine Global Investment Management, commented on the interest-cut debate following Powell’s speech

This is a relief rally. It is a confirmation to the market that Powell is on his track to cut rates, even though he is still data dependent. Tracy

Solana’s rise mirrors the triangular pattern

Solana was not the only digital asset that experienced a surge. Bitcoin and Avalanche also rose tremendously, with Bitcoin’s price climbing by over $63,000 on Friday after Powell’s address. AVAX, on the other hand, spiked by 8%.

The rally in SOL is part of a larger recovery within a symmetrical triangle pattern. This pattern, which indicates continuation, forms as the price oscillates within a tightening range defined by a descending resistance trendline and an ascending support trendline.

A breakout from this triangle usually aligns with the previous trend and can mirror the triangle’s height. As of August 24, SOL has rebounded from the lower trendline, aiming for the upper trendline at approximately $175.