Following Jerome Powell’s suggestion that the federal reserve may lower interest rates in the upcoming months, the price of solana has increased by 10% to $161. Joining the upward trend and concentrating on the potential for interest rate reductions are cryptocurrency traders.

SOL saw a huge spike, breaking beyond the $160 mark, following a week in which it had been trading close to $140 due to the Fed’s dovish position.

Jerome Powell alludes to potential changes in policy that would raise SOL costs.

At the Federal Reserve’s annual Jackson Hole Economic Symposium in Wyoming on August 23, Jerome Powell, the Chair of the Board, discussed the necessity for further policy changes in light of the declining rate of inflation.

Regarding changes to policy, the Fed Chair made a suggestion about possible rate reductions but did not elaborate on the precise timing or magnitude of those reductions. All he said was that future data, the changing picture, and the risk-benefit ratio will determine when and how quickly rates are lowered.

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That in on of itself was sufficient to propel major cryptocurrency marketplaces, including Solana’s. Solana’s price jumped to over $150 a few hours after Powell’s speech, and it has since continued to rise, reaching $161, or 10% more in the previous day.

 

The increase in funding rates and open interest in the futures market is reflected in this price spike. SOL’s open interest increased to $2.19 billion on August 24 from $2.09 billion the day before, per the data portal Coinglass. Its financing rates, which are determined every eight hours, have increased from 0.0028% to 0.0054% concurrently.

After Powell’s address, Tracy Chen, a portfolio manager at Brandywine Global Investment Management, offered her thoughts on the interest-cut controversy.

This rally is for relief. Powell’s intention to lower rates is confirmed to the market, despite the fact that he still depends on data.

The triangle pattern is mirrored by Solana’s rising.

There were other digital assets that saw a boom besides Solana. Both Bitcoin and Avalanche saw significant price increases; following Powell’s speech on Friday, the price of Bitcoin increased by more over $63,000. AVAX, however, experienced an 8% increase.

SOL’s recent surge is a component of a broader rebound inside a pattern of symmetric triangles. As the price moves inside a tightening range delineated by a falling resistance trendline and an ascending support trendline, this pattern—which suggests continuation—forms.

A breakout from this triangle can resemble the height of the triangle and typically follows the preceding trend. SOL has recovered from the lower trendline as of August 24, seeking to reach the upper trendline at roughly $175.