Solana price is down today as the week-long crypto market sell-off stands as the primary culprit in SOL’s recent downside.
The crypto market bloodbath continues as the latest macroeconomic data shows that US August job numbers came in lower than expected. Most of the top cryptocurrencies by market capitalization are flashing red, with Solana
SOL
tickers down
$125
dropping as much as 5% to an intraday low of $127 on Sept. 6.
Data from Cointelegraph Markets Pro and TradingView show SOL trading at $129.18, down 2.5% over the last 24 hours. SOL’s weekly losses stand around 8% and 12% in the 30-day timeframe.
SOL’s performance over the last day has been accompanied by a leap in its trading volume, which has increased by 25% to $2.4 billion,
asserting the intensity of the sell-side pressure. This decrease in price and high trading activity has seen its total market capitalization drop to $60.06 billion,
but according to data from CoinMarketCap, SOL still maintains its position as the fifth largest cryptocurrency.
Let’s look at the top catalysts driving SOL’s price lower.
Bearish sentiment dominates the wider crypto market
The drawdown in SOL’s price over the last ten days is largely attributed to the negative sentiment in the
broader crypto market, led by intensified concerns over the strength of the US labor market.
On Sept. 6, US job figures for August came in at 142,000, lower than the 160,000 forecast by economists.
The unemployment rate edged down to 4.2%, in line with expectations and from 4.3% in July, according to data released by the US Bureau of Labour Statistics.
“The unemployment rate falling to 4.2% was some decent news here,” said the capital markets commentator The Kobeissi Letter in a response post on X.
The August jobs numbers have taken on extra importance as a key macroeconomic data point, given that the US Federal Reserve is expected to begin cutting rates in its Sept. 18 meeting.
The Kobeissi Letter believes that the latest jobs report is “unlikely” to strongly sway the Fed’s decision.
“The countdown to the Fed meeting begins now.”
Sentiment toward crypto has also hit its lowest point since Aug. 5.
On Sept. 6, the Crypto Fear & Greed Index scored 22 out of 100, showing that the market is experiencing “extreme fear.”
Decreasing network activity backs SOL price drop
SOL’s latest price drop follows a decrease in onchain activity, as fewer users engage with the network, contributing to the decreasing momentum.
Data from DefiLlama reveals the TVL on the Solana network has decreased by 12% from $5.48 billion on Aug. 25 to $4.716 billion on Sept. 6, suggesting that users and developers are interacting less with the network.