Solana’s SOL token is poised for a potential price swing of almost 6% as whales dump their holdings ahead of the U.S. NFP report, which could influence interest-rate cut expectations and impact cryptocurrency prices.
Several whales have dumped $46.3 million worth of SOL into the market ahead of the U.S. non-farm payroll (NFP) report, which could influence interest-rate cut expectations and impact cryptocurrency prices.
SOL prices refer to the value of Solana's native cryptocurrency, SOL.
It is a decentralized, open-source blockchain platform that enables fast and secure transactions.
The price of SOL fluctuates based on market demand, supply, and overall crypto market trends.
On average, SOL prices range from $10 to $100 per coin, with occasional spikes to over $200 due to high trading volumes or significant updates to the Solana ecosystem.
Market Sentiment: Moderate Volatility Expected
Solana‘s SOL token is poised for a potential price swing of almost 6% after some large investors, or whales, dumped their holdings ahead of the U.S. NFP report due later Friday. This estimate comes from Volmex‘s one-day implied volatility index (IV) for SOL, which shows an expected 24-hour price volatility of 5.74%. The daily figure is derived by dividing the annualized volatility by the square root of 365, the number of trading days in a year.
Whale Selling Activity
Data tracked by blockchain sleuth Lookonchain shows several whales unstaked and dumped SOL worth $46.3 million into the market. Large offloading of coins by whales often leads to bearish price action. However, the amount sold early today equates to 0.97% of the cryptocurrency’s 24-hour trading volume of $4.7 billion.
U.S. Jobs Data: A Key Influencer
The U.S. jobs data, scheduled for release at 12:30 GMT, is forecast to reveal that the economy added 130,000 jobs in March, slowdown from February’s 151,000 and well below the 12-month average of 162,300. According to FactSet, the median estimate for the jobless rate for March is 4.2%, the highest since November and up from February’s 4.1% reading. Average hourly earnings are forecast to have risen 0.3% month-on-month, matching February’s pace.
A weaker-than-expected figure will likely validate renewed pricing for four 25-basis-point interest-rate cuts this year, potentially sending risk assets, including cryptocurrencies, higher.
An interest rate cut, also known as a monetary policy easing, is when a central bank lowers its benchmark interest rate to stimulate economic growth.
This reduction in borrowing costs encourages consumers and businesses to borrow more, spend more, and invest in the economy.
As a result, lower interest rates can increase demand for goods and services, boost employment, and stabilize financial markets.
