- Solana price takes a step back this morning as traders fret about the Friday job report.
- SOL price could slide and print a new low for the week as worries broaden.
- Expect a breakout towards Friday with the prospect of more fresh lows.
Solana (SOL) price falters and trips as investors and traders start worrying about the US job report out on Friday, September 2. The ADP private payrolls report, which came out on Wednesday, is sometimes seen as a precursor to the NFP report two days later, and it showed a smaller-than-expected increase. Yet despite coming out below-expectations markets quickly started to perceive the number as an increase nevertheless, and therefore indicative of a continuing very tight labour market. This confirms fears that the US central bank will keep tightening and will probably not ease financial conditions before the end of 2023, which means persistent headwinds for cryptocurrencies for at least another 15 months.
SOL price is facing headwinds for another 15 months
Solana price slips further on Thursday, after Wednesday saw it forced to hand back its 5% profit for the day, at the end of the US trading session. SOL price is thus at risk of an accelerated move to the downside. The bottom for this week is set at $30 but if price action starts to move below there, expect a magnetic pull with the $26 marker as the attracting element in this drop. That could be as far as the correction goes because the Relative Strength Index (RSI) trades at lower levels and close to the oversold area.
SOL/USD Daily chart
For there to be any upside, a catalyst event is needed, which could come from a disappointing US jobs report on Friday . Disappointing, in this case, would mean that the number itself points to an even lower increase or favour even a decrease in jobs. This would translate in an easier policy from the Fed and a possible turnaround for cryptocurrencies. On the back of that number, cryptocurrencies could get a massive demand in bids and see price action jumping higher towards $38.
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