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

2 years ago

Solana (SOL) continued its two-week uptrend connected March 30, rising successful portion owing to its integration with OpenSea, the world's biggest nonfungible token (NFT) by volume.

SOL terms rises to multi-week highs

SOL's terms gained 4.5% successful the past 24 hours to astir $117 per token, its champion level since Feb. 11, 2022.

The coin's latest determination upside pushed its two-week insubstantial returns to implicit 50%. Nonetheless, SOL/USD is inactive down 30% connected a year-to-date timeframe, risking pullback arsenic the terms tested its 200-day exponential moving mean (200-day EMA; the bluish wave) adjacent $120 arsenic resistance.

The 200-day EMA coincided with the 0.236 Fib enactment of the Fibonacci retracement graph — drawn from $266-swing precocious to $75-swing low. This adds different furniture of selloff risks adjacent $120, which volition apt beryllium to beryllium a hard level to break.

SOL NFT transactions deed grounds high

OpenSea's determination to integrate Solana's NFTs into its marketplace connected Tuesday mightiness person boosted SOL's price. The rally besides coincided with Solana-based NFT marketplaces signaling their champion time successful presumption of volumes and transactions connected March 29, according to data from Dune Analytics.

The full fig of transactions executed crossed these Solana platforms crossed 57,000. Meanwhile, their nett valuation came retired to beryllium astir 136,000 SOL, astir $15.2 cardinal astatine today's price, making it the largest regular transaction measurement observed wrong Solana's NFT ecosystem to date.

Interestingly, Magic Eden processed astir 80% of the full reported transactions connected March 29. The NFT marketplace, which precocious raised $27 cardinal successful a Series A backing circular led by Paradigm, has been consistently outperforming its peers crossed the Solana ecosystem since its motorboat successful October 2021.

But NFT income measurement downtrend remains

Solana NFT marketplaces person been underperforming successful presumption of income measurement contempt witnessing maturation successful their transactional activity.

The owner-to-owner NFT income measurement has dropped by much than 13% to $147.41 cardinal successful the past 30 days, according to data provided by CryptoSlam. Meanwhile, it has shed 30% compared to January's $202.19 cardinal figure.

However, Solana is not unsocial with similar diminution successful NFT income crossed different chains, noted Philip Gunwhy, spouse astatine sports NFT marketplace Blockasset. He adds tha increased crypto regulations successful the U.S. and China mightiness person dampened the request for NFTs arsenic well.

For instance, Ethereum (ETH), the starring astute declaration level that hosts much than 90% of each the NFT volumes, witnessed a diminution of astir 38% successful income volumes successful the past 30 days, astir thrice higher than Solana.

Other blockchain projects, including Avalanche (AVAX), Ronin, and Flow, besides suffered 30%-60% drops successful their NFT income measurement — successful the aforesaid period.

"Clearly, the level of income is proportional to the fig of users, which is presently decreasing successful the bulk of marketplaces," Gunwhy explained.

"NFT marketplace correlates with capitalist sentiment alternatively than cardinal factors, this is simply a inclination that we cannot disregard for the clip being."

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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