Can SOL reclaim $170? Two indicators scream ‘buy’
SOL derivatives and the Solana network have remained stable, indicating that traders and users are not ready to give up.
Solana’s native token, SOL (SOL), hit a four-week low on June 11 as it tested the $145 support level. Within four days, SOL underwent a sharp 15.8% decline, underperforming the broader cryptocurrency market, which saw a 10% drop in total capitalization during the same period. Despite this, the macroeconomic instability may have created a buying opportunity for SOL, according to two key indicators.
Investors are concerned that the stock market may correct itself following mixed economic signals, prompting the United States Federal Reserve (Fed) to delay interest rate cuts. The CME FedWatch tool indicates that traders now see a 48% chance of rates staying the same until September, a significant increase from 39% a month ago. After reaching a record high on June 7, the S&P 500 index has plateaued, with investors awaiting remarks from Fed Chair Jerome Powell on June 12.
Stuart Kaiser, Citigroup’s head of U.S. equity trading strategy, suggests that a Consumer Price Index (CPI) increase above 0.4% compared to the previous month could trigger a broad market selloff, potentially dropping the S&P 500 by 1.5% to 2.5%, as reported by Yahoo Finance. Kaiser also cautioned that the S&P 500 might experience its largest single-day movement since March 2023. The U.S. inflation data, scheduled for release on June 12, is keenly anticipated ahead of the Fed’s rate decision.
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Author: Marcel Pechman
