Solana (SOL) Hits $107 to Bring $120 into Play

Key Insights:

• Solana (SOL) wraps up a bullish week, with a 5.20% rally on Sunday.
• The new deal with PUBG developer Krafton delivered price support in the week.
• Technical indicators are bullish, supporting the run at $120 levels.

Solana (SOL) was amongst the crypto front runners on Sunday. Following a 3.18% gain on Saturday, SOL rallied by 5.20% to end the day at $107.08.

The bullish end to the week saw SOL strike a March high of $107.44. In the week ending March-27, SOL jumped by 20.9%.

News of a Solana ETP and a new Solana-Krafton deal delivered the upside. Broader crypto market sentiment was also SOL positive.

Krafton Deal with Solana Labs Drives Demand for SOL

In the week, news of Krafton striking a strategic deal with Solana Labs supported a return to $100. Krafton is a billion-dollar gaming developer behind PlayerUnknown’s Battlegrounds (PUBG).

Krafton will collaborate with Solana to build games on blockchain technology to establish a Web3 ecosystem.

This week, there was also news of CoinShares and FTX launching a ‘physically-backed Solana exchange-traded product (ETP).’ The Solana ETP will launch with 1 million SOL in seed capital, offering 3% staking rewards and reduced management fees.

SOL Price Action

At the time of writing, Solana was down by 0.97% to $106.04. A choppy start to the day saw SOL rise to an early morning high of $107.59 before falling to a low of $105.69.

Technical Indicators

SOL will need to avoid the $104.5 pivot to make a run on the First Major Resistance Level at $110.0.

Bullish broader market sentiment would support a break out from the morning high of $107.59.

In the event of another extended rally, SOL should test the Second Major Resistance Level at $113 and resistance at $115. The Third Major Resistance Level sits at $121.6.

A fall through the pivot would bring the First Major Support Level at $101.5 into play. Barring an extended sell-off throughout the day, Solana should avoid sub-$100. The Second Major Support Level sits at $95.9.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. SOL currently sits above the 50-day EMA at $97.32.

This morning, the 50-day EMA pulled away from the 200-day EMA. We also saw the 100-day converge on the 200-day EMA. A bullish cross of the 100-day EMA through the 200-day EMA would bring $115 in play.

SOL would need to steer well clear of sub-$100 and the 50-day EMA to support the continued move towards $120.