Solana (SOL) Returns to $100 Amidst Pickup in NFT Activity

By:

Published: Mar 3, 2022, 00:36 GMT+00:00

Technical indicators and Solana-based NFT activity are bullish for Solana, with $110 levels the next target.

Key Insights:

Solana (SOL) rose by 2.03% on Wednesday to close out the day at $100.65.
Increased Solana-based NFT activity was market positive mid-week.
Indicators have become more bullish supporting a run at $110 levels.

Solana (SOL) bucked the broader crypto market trend on Wednesday. Reversing a 1.10% loss from Tuesday, Solana rose by 2.03% to end the day at $100.65. It was Solana’s first close at $100 since 16^th February.

The upside on the day came despite bearish sentiment hitting the broader crypto market. A pickup in Solana-based NFT activity provided support mid-week.

Solana-Based NFT Activity Grabs the Crypto Headlines

With Solana putting power outage issues behind it, several NFT launches have drawn market interest. On Wednesday, NFT marketplace DeepRedSky launched a Donald Trump Solana-based NFT collection. The Trump collection followed recent news of Solana-based NFTs on sale at NYC vending machines.

Overnight, news of Sony and Universal joining the Solana NFT marketplace Snowcrash was also positive.

SOL Price Action

At the time of writing, Solana was down by 0.48% to $100.27.

Technical Indicators

Solana will need to break out from the $100.27 pivot to make a run on the First Major Resistance Level at $105.73 and Wednesday’s high $106.37.

In the event of another extended rally, the Second Major Resistance Level at $110.83 will come into play. The Third Major Resistance Level sits at $120.33.

Failure to break out from the pivot would bring the First Major Support Level at $96.21 into play. Barring an extended sell-off throughout the day, Solana should avoid sub-$90 levels. The Second Major Support Level at $91.77 should limit the downside.

The EMAs and the 4-hourly candlestick chart (above) show a more bullish signal. Solana currently sits below the 200-day EMA at $100.58. However, the 50-day EMA has narrowed on the 100-day EMA, with the 50-day and 100-day EMAs narrowing on the 200-day EMA. A bullish cross of the 50-day EMA through the 100-day EMA would put the Major Resistance levels in play.

Avoiding the 100-day EMA, currently at $95.00, would support further upside.

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.