Solana (SOL) Bucks Broader Market Trend on OpenSea NFT News
Key Insights:
- Solana (SOL) rose by 1.82% on Thursday, bucking the broader crypto market trend.
- Reports of OpenSea supporting Solana-based NFTs from April delivered support.
- Technical indicators are bullish, supporting the move through to $130 levels.
Solana (SOL) gained 1.82% on Thursday. Following a 7.93% rally from Wednesday, SOL ended the day at $122.84. It was the fifteenth daily rise in 18-sessions.
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The upside came despite a bearish afternoon session for the broader crypto market.
A bullish start to the day saw SOL surge to a morning high of $128.46. SOL broke through the First Major Resistance Level at $127.75 before falling back to sub-$123.
NFT Chatter Delivers SOL Support
News of OpenSea supporting Solana-based NFTs from April delivered price support.
Nidal Hussein, Co-Founder of Jambo Mambo, an NFT gaming marketplace on the Solana blockchain, told FX Empire,
“I think that OpenSea, including Solana NFT, will establish a lot of new blue-chip NFTs to the Solana ecosystem and push higher highs since it is some kind of commercialization.”
Through the second half of the day, market reaction to the EU Parliament vote in favor of KYC requirements for private crypto wallets weighed. KYC requirements will be in place for payments above the €1,000 threshold.
SOL Price Action
At the time of writing, Solana was up by 0.78% to $123.80.
Technical Indicators
SOL will need to avoid the $122.56 pivot to make a move through the First Major Resistance Level at $125.14.
Broader market sentiment would need to improve to support a breakout from $125 levels.
In the event of another extended rally, SOL should test the Second Major Resistance Level at $127.42 and resistance at $130. The Third Major Resistance Level sits at $132.27.
A fall through the pivot would bring the First Major Support Level at $120.28 into play. Barring an extended sell-off throughout the day, Solana should avoid sub-$115. The Second Major Support Level at $117.72 should limit the downside.
The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. SOL currently sits above the 50-day EMA at $110.00. This morning, the 50-day EMA pulled away from the 100-day EMA. We also saw the 100-day EMA pull away from the 200-day EMA.
SOL would need to steer well clear of sub-$115 and the 50-day EMA to support a move through $130.