Key Insights:
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On Friday, Solana (SOL) slid by 7.28% as investor uncertainty weighed on the broader crypto market.
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Solana found little support despite the recent inclusion of Solana-based NFTs on OpenSea.
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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.
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.
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.
This article was originally posted on FX Empire