A 7% Tumble Sends Solana (SOL) to sub-$109 Before Finding Support

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Published: Apr 9, 2022, 01:28 GMT+00:00

Following Friday's pullback, SOL will need to avoid a fall through the 200-day EMA to support a move back through to $115 levels.

Key Insights:

On Friday, Solana (SOL) slid by 7.28% as investor uncertainty weighed on the broader crypto market.
Solana found little support despite the recent inclusion of Solana-based NFTs on OpenSea.
Technical indicators remain bullish, with SOL sitting above the 200-day EMA.

Solana (SOL) slid by 7.28% on Friday. Reversing a 4.97% gain from Thursday, SOL ended the day at $109.97. It was the fourth daily loss in five sessions.

Negative sentiment towards the latest FOMC meeting minutes resurfaced to leave the broader crypto market in the red.

A bullish start to Friday saw SOL rise to an early morning day high of $122.41 before hitting reverse. The day’s First Major Resistance Level at $122.05 pegged SOL back early in the day.

The sell-off saw SOL slide to a late-day low of $108.15 before steadying. SOL fell through the day’s First Major Support Level at $113.05 to end the day at $109 levels.

The OpenSea launch of Solana-Based NFTs Remains Price Positive

On Thursday, OpenSea announced the launch of Solana-based NFT trading on the OpenSea marketplace.

The initial beta launch will have limited Solana-NFT coverage. In beta, OpenSea is looking for user comments ahead of a full launch.

A full launch will include ‘a scalable way to expand coverage via the Metaplex collection standard.’

The inclusion of Solana-based NFTs on the OpenSea marketplace remains price positive. Much, however, will depend upon trading volumes.

SOL Price Action

At the time of writing, Solana was up by 1.25% to $111.34. A bullish start to the day saw SOL rally to an early morning high of $111.81 before easing back.

A move through to $115 would be needed to shift bearish sentiment.

Technical Indicators

SOL will need to move through the $113.49 pivot to make a move through the First Major Resistance Level at $118.87.

Broader market sentiment would need to improve to support a move through $115 levels.

In the event of another extended rally, SOL should test resistance at $125 and the Second Major Resistance Level at $127.75.

Failure to move through the pivot would bring the First Major Support Level at $104.61 into play. Barring another extended sell-off throughout the day, Solana should avoid sub-$100. The Second Major Support Level sits at $99.27.

A move through the pivot would bring $120 into play.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. Despite Friday’s session, SOL sits above the 200-day EMA at $109. This morning, the 50-day EMA narrowed to the 100-day EMA. We also saw the 100-day EMA move towards the 200-day EMA, SOL negative.

SOL would need to move through the 100-day EMA, currently at $116.39, to support a return to $120.

A fall through the 200-day EMA would bring support levels into play.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.