- Solana price flipped 180 degrees after a subdued trading day on the back of US inflation data.
- SOL jumps 5% with more gains as the US trading session picks up speed.
- Markets see inflation come down more than expected, redrawing plans of a white Christmas after all.
Solana (SOL) price is flipping its mind as trading platforms cannot keep up with the buy orders rolling in. Overall in cryptocurrencies, the buy-side volume is exploding as bulls want to join the price action of this rally that could see a follow-through even into 2023. With the inflation chain seemingly broken, markets are finally emerging at the surface and are taking a breath after what has been a frightening year.
SOL rockets higher on the back of undershooting inflation
Solana price jumps over 5% intraday at the time of writing as earlier today US inflation numbers came out with both the core inflation and overall inflation lower than the lowest economic estimation. This reshuffles the cards for the Fed, which is holding its FOMC meeting tomorrow. Fed futures are pointing to only a 50 basis point hike with three more into 2023, and that should be the end of this strangling cycle.
SOL jumps higher and breaks the high of December but still remains some cents away from $15.07. That level is aligned in the sand and needs to be broken, followed by a daily close above there, preferably to maintain the bullish momentum. If that is the case this evening, expect a jump to $18.66 on the back of the Fed tomorrow and possibly $20 by Christmas.
SOL/USD daily chart
Possible risk, of course, could come from the price action that starts to crack and fade under profit-taking. That would mean that SOL price starts to pair back gains and flirts with an unchanged or lower close near the US closing bell. When that happens, expect to see possibly another small leg lower toward $12 or $10 in the coming days as clearly sentiment got too far ahead of itself, and the Fed comes with the risk of delivering a disappointing rate path that points to still higher and bigger rate hikes.
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