Solana (SOL) Price on the Verge of a Bullish Breakout as Rare Chart Patterns Form

Solanas (SOL) price is on the verge of a bullish breakout as it slowly forms a rare chart pattern on the eight-hour chart.

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, it has flashed a bullish flag pattern, which, as the name suggests, 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, Solana price exhibits an inverse head and shoulders pattern. This pattern comprises a head at $97 and two shoulders. The neckline of this pattern is at $157.

There is a likelihood that the SOL price will 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.

Fed Decision and Stablecoin Growth

Solana price 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 that more users are interacting with the network.