Solana (SOL) Steadies While Solana-Based NFT Trading Volumes Fall

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Published: Apr 10, 2022, 00:18 GMT+00:00

Solana (SOL) flatlined on Saturday, with market uncertainty and falling OpenSea trading volumes pinning SOL back from a return to $120 levels.

Solana SOL isometric token symbol in digital circle on blue back

Key Insights:

On Saturday, Solana (SOL) rose by 2.72% to partially reverse Friday’s 7.28% slide
The recent inclusion of Solana-based NFTs on OpenSea remains positive for SOL.
Technical indicators remain bullish, with SOL sitting above the 200-day EMA.

Solana (SOL) rose by 2.72% on Saturday. Partially reversing a 7.28% slide from Friday, SOL ended the day at $112.96.

Following a second broader crypto market sell-off in the week, the crypto majors flatlined on Saturday. Negative sentiment towards the latest FOMC meeting minutes lingered, with no crypto news to change the narrative.

A choppy start saw SOL fall to an early morning low of $108.32 before finding support.

SOL moved back through to $110 levels before a final-hour run to a day high of $113.67.

Falling short of the First Major Resistance Level at $118.87, SOL eased back to end the day at sub-$113.

Inclusion of Solana-Based NFT on OpenSea 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.

Solana-based NFT transactions and trading volumes have trended downwards since the OpenSea launch, however.

According to Dune Analytics, daily NFT transactions spiked on April 07, with 12,012 transactions before sliding to just 2,763 on Saturday.

Trading volumes also saw a sharp decline on Saturday to test support for SOL.

SOL Price Action

At the time of writing, Solana was down by 0.27% to $112.66.

A move through to $115 would bring $120 into play.

Technical Indicators

SOL will need to avoid the $111.63 pivot to make a move through the First Major Resistance Level at $114.96.

Broader market sentiment would need to improve to support a move through Saturday’s high of $113.67.

In the event of an extended rally, SOL should test the Second Major Resistance Level at $117 and resistance at $120. The Third Major Resistance Level sits at $122.35.

A fall through the pivot would bring the First Major Support Level at $109.62 into play. Barring another extended sell-off throughout the day, Solana should avoid sub-$105. The Second Major Support Level at $106.31 should limit the downside.

Avoiding the day’s pivot will be key to a continued recovery of Friday’s losses.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. Following Saturday’s session, SOL currently sits above the 200-day EMA at $109.25. This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA moved away from the 200-day EMA to provide support.

SOL would need to move through the 100-day EMA at $115.81 to support a return to $120.

A move through the 100-day EMA would support a breakout session.

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.