Why is SOL rising in price?

After a sharp sell-off on Black Monday on August 5, SOL prices rebounded 31%, rising back above $144 as of August 6. This recovery is in line with the rise in cryptocurrencies and global stock markets, thanks to positive data from the US services sector and expectations of rate cuts.

The latest data showed that the US services sector expanded in July, with the ISM services index rising to 51.4, exceeding expectations and easing recession concerns. This news has driven a rebound in risky asset prices, including Solana.

The US jobs report showed that the unemployment rate rose to 4.3% and wage growth slowed, increasing the likelihood of a Fed rate cut. CME data shows that the probability of a 50 basis point rate cut in September is 80.5%.

Sol's daily relative strength index (RSI) fell to 31.78, close to oversold levels, which generally indicates that prices may rebound. If SOL continues to rebound, its price target may rise to $188.50 by September.

As market expectations for Fed rate cuts increase, risky assets such as Sol may continue to benefit. Investors should pay attention to macroeconomic data and technical indicators to seize market opportunities.

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