Solana (SOL) Returns to $100 on Krafton Partnership

Key Insights:

• Solana (SOL) rallied by 7.90% to end Thursday at $102.39.
• News of a new deal with PUBG developer Krafton delivered price support.
• Technical indicators are bullish, supporting a run at $120 levels.

Solana (SOL) was amongst the front runners on Thursday. Following a 4.89% rally on Wednesday, SOL jumped by 7.90% to end the day at $102.39.

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

Mid-week, news hit the wires of Krafton striking a strategic deal with Solana Labs. Krafton is a billion-dollar gaming developer behind PlayerUnknown’s Battlegrounds (PUBG).

Krafton will reportedly 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. The ETP will offer investors 3% staking rewards and reduced management fees.

SOL Price Action

At the time of writing, Solana was down by 0.49% to $101.89.

Technical Indicators

SOL will need to avoid the $99.88 pivot to make a run on the First Major Resistance Level at $106.21 and the March high of $106.37.

Bullish broader market sentiment would support a break out from $105.

In the event of another extended rally, the Second Major Resistance Level at $110.07 will come into play. The Third Major Resistance Level sits at $120.24.

A fall through the pivot would bring the First Major Support Level at $96.03. Barring an extended sell-off throughout the day, Solana should avoid Thursday’s low of $93.53. The Second Major Support Level sits at $89.70.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. SOL currently sits above the 50-day EMA at $92.14. This morning, we saw a bullish cross, with the 50-day EMA crossing through the 200-day EMA.

Also bullish was a narrowing of the 100-day to the 200-day EMA. A bullish cross of the 100-day EMA through the 200-day EMA would bring $120 in play.

SOL would need to steer well clear of the 50-day EMA to support a fifth consecutive day in the green.