Solana price up 50% in two weeks, but here’s why $120 will be hard to crack

Solana (SOL) continued its two-week uptrend on March 30, rising, partly, owing to its integration with OpenSea, the world’s biggest nonfungible token (NFT) marketplace by quantity.

SOL worth rises to multi-week highs

SOL’s worth gained 4.5% previously 24 hours to round $117 per token, its finest degree since Feb. 11, 2022.

The coin’s newest transfer upside pushed its two-week paper returns to over 50%. Nonetheless, SOL/USD continues to be down 30% on a year-to-date timeframe, risking pullback as the worth examined its 200-day exponential transferring common (200-day EMA; the blue wave) close to $120 as resistance.

SOL/USD each day worth chart. Supply: TradingView

The 200-day EMA coincided with the 0.236 Fib line of the Fibonacci retracement graph — drawn from $266-swing excessive to $75-swing low. This provides one other layer of selloff dangers close to $120, which is able to possible show to be a tough degree to interrupt. 

SOL NFT transactions hit file excessive

OpenSea’s choice to combine Solana’s NFTs into its market on March 29 may need boosted SOL’s worth. The rally additionally coincided with Solana-based NFT marketplaces recording their finest day when it comes to volumes and transactions on March 29, according to knowledge from Dune Analytics. 

The entire variety of transactions executed throughout these Solana platforms crossed 57,000. In the meantime, their web valuation got here out to be round 136,000 SOL, roughly $15.2 million at March 30’s worth, making it the biggest each day transaction quantity noticed inside Solana’s NFT ecosystem to this point.

Solana NFT each day transaction quantity. Supply: Dune Analytics

Apparently, Magic Eden processed about 80% of the total reported transactions on March 29. The NFT market, which just lately raised $27 million in a Series A funding spherical led by Paradigm, has been persistently outperforming its friends throughout the Solana ecosystem since its launch in October 2021. 

However NFT gross sales quantity downtrend stays

Solana NFT marketplaces have been underperforming when it comes to gross sales quantity, regardless of witnessing progress of their transactional exercise.

The owner-to-owner NFT gross sales quantity has dropped by greater than 13% to $147.41 million previously 30 days, according to knowledge supplied by CryptoSlam. In the meantime, it has shed 30% in comparison with January’s $202.19 million determine.

Solana gross sales quantity. Supply: CryptoSlam

Nonetheless, Solana will not be alone with similar declines in NFT sales across other chains, famous Philip Gunwhy, a companion at sports activities NFT market Blockasset. He provides that increased crypto regulations in the US and China may need dampened the demand for NFTs as effectively.

Associated: OpenSea set to integrate Solana in April, further expanding the NFT ecosystem

As an illustration, Ethereum (ETH), the main sensible contract platform, which hosts more than 90% of all the NFT volumes, witnessed a decline of practically 38% in gross sales volumes within the final 30 days, virtually thrice larger than Solana. 

Ethereum NFT gross sales quantity and distinctive consumers. Supply: CryptoSlam

Different blockchain initiatives, together with Avalanche (AVAX), Ronin and Flow, additionally suffered 30%–60% drops of their NFT gross sales quantity durin the identical interval.

“Clearly, the extent of gross sales is proportional to the variety of customers, which is presently reducing within the majority of marketplaces,” Gunwhy defined.

“NFT market correlates with investor sentiment quite than basic components, it is a development that we can not ignore in the meanwhile.”

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer entails danger, it is best to conduct your individual analysis when making a call.

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