Altcoins in red - bigger dump coming?

Table of Contents

• Solana returning to support
• $SUI forms yet another bull flag
• Post FOMC bounce?

With the Federal Reserve’s FOMC meeting coming up later on Wednesday, $BTC and the altcoins are mostly in the red. Is this the typical dump before this meeting, or could there be a bigger correction?

Bitcoin is leading the way with a 1% red candle already. Many altcoins are doing a lot worse than this. However, looking back at the price action for previous FOMC meetings, this is generally par for the course. Will this dump continue after the meeting, or are we more likely to see the normal resumption of the uptrend?

Solana returning to support

That being said, one of the crowd favourites for this crypto bull market is Solana (SOL). $SOL is down nearly 3% on the day so far, and this can be added to the 3.3% down day on Monday. 

The Solana price had been accelerating steadily ahead of the eagerly awaited Jupiter airdrop. With the airdrop due to take place today, perhaps the $SOL price is reflecting this now that the news is about to happen.

Source: Coingecko/Trading View

Observing the chart above, it can be seen that the $SOL price is possibly going to come down to the support at $95. This also coincides near to the top of the downward trend line, so this could be a likely area for a potential bounce.

$SUI forms yet another bull flag

Source: Coingecko/Trading View

Sui (SUI) is another cryptocurrency that has been running recently. It is currently forming yet another bull flag, and as per the previous two flags, it is likely to leave the current one to the upside. Support can be found at $1.43 should a wick come down, or if the bull flag is invalidated.

Post FOMC bounce?

These are just two of the top-performing altcoins. If the FOMC meeting does play out as per the previous four of them, the altcoins may well see a return to the green by the end of the day. That said, trade very cautiously.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.