Can SOL recover the $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.

Can SOL recover the $170? Two indicators scream 'buy'

ALTCOIN RADAR

Solana’s native token, SOL

SUN

tickers down

R$817

, hit a four-week low on June 11 as it tested the $145 support level. In four days, SOL suffered a sharp drop of 15.8%, underperforming the broader cryptocurrency market, which recorded a 10% drop in total capitalization during the same period. Despite this, macroeconomic instability may have created a buying opportunity for SOL, according to two key indicators.

Negative impact of macroeconomic events on the SOL price

Investors are worried that the stock market could correct following mixed economic signals, prompting the US Federal Reserve (Fed) to postpone interest rate cuts. The CME FedWatch tool indicates that traders now see a 48% chance of rates remaining the same through September, a significant increase from 39% a month ago. After reaching an all-time high on June 7, the S&P 500 index stagnated, with investors awaiting statements from Fed Chairman Jerome Powell on June 12.

Stuart Kaiser, head of US equity trading strategy at Citigroup, suggests that a Consumer Price Index (CPI) rise above 0.4% from the previous month could trigger a market sell-off, potentially reducing the S&P 500 by 1.5% to 2.5%, as reported by Yahoo Finance. Kaiser also warned that the S&P 500 could experience its biggest daily move since March 2023. US inflation data, scheduled to be released on June 12, is eagerly awaited ahead of the Fed's rate decision.

SOL investors are hopeful about a possible exchange-traded fund listing