The Solana and Polkadot prices have joined the rest of the cryptocurrency price rebound. Solana price has jumped by more than 20% in the past 7 days, bringing its total market capitalization to more than $8.1 billion. Polkadot has jumped by 28%, bringing its total market cap to more than $14 billion.
Polkadot and Solana rebound
It has been a good week for most cryptocurrencies. Most digital currencies like Bitcoin, Ethereum, Cardano, Binance, and Crypto.com have all rallied. At the same time, the volume in major exchanges like Binance, OKEx, Huobi, and Crypto.com have surged, according to data compiled by CoinMarketCap.
There are several catalysts that have pushed the prices of digital currencies higher. First, there is the fact that the overall market fear has subsided in the past few days. Last week, the fear and greed index declined to about 10. Today, it has jumped to almost 30, signalling that investors are no longer all that fearful.
Second, US bond yields have retreated, signalling that investors are no longer worried about high interest rates. Therefore, with Covid infections rising, there is an elevated risk that the Federal Reserve will sound dovish in its meeting this week. In most times, the prices of cryptocurrencies like Solana and Polkadot tends to do well in a low interest rate environment.
Third, Polkadot and Solana prices have risen because of the positive headlines about the industry. For one, there are rumours that Amazon is considering moving into cryptocurrencies. It has advertised several crypto-related roles and is said to be about to accept the coin. Most altcoins like Zilliqa, Polkadot, and Ether tends to have a correlation with Bitcoin.
Solana price prediction
The four-hour chart shows that the Solana price has bounced back lately. It has already risen by more than 50% from its lowest level in June this year. Along the way, the coin has formed what looks like an inverted head and shoulders pattern. It has also risen above the 50-period and 100-period moving averages, which is usually a bullish signal.
Therefore, I suspect that the coin will continue rising as bulls target the next key resistance level at $35. This price is also along the descending trendline shown in black.
Polkadot price prediction
The four-hour chart shows that the Polkadot price has also bounced back. It has risen by more than 41% from its lowest level last week. The coin has also moved above the important resistance at $13.50, which was the lowest level in June.
Further, Polkadot has risen above the 50-day and 100-day moving averages. The Relative Strength Index (RSI) has also kept rising. Therefore, the coin will likely keep rising as bulls target the next key resistance at $17.66, which was the highest level on July 17.