Solana (SOL) Tumbles by 10% in Market Rout to Test Support at $100

Key Insights:

• On Monday, Solana (SOL) tumbled by 10.24% to end the day at sub-$100.
• A broad-based crypto sell-off and falling Solana-based NFT transaction volumes were SOL price negative.
• Technical indicators are bearish, with SOL sitting below the 200-day EMA.

Solana (SOL) tumbled by 10.24% on Monday. Following a 1.72% fall on Sunday, SOL ended the day at $99.65.

Bearish sentiment across the broader crypto market continued to weigh on SOL, which had ended last week down 18.91%.

Since revisiting $143 on April-02, SOL has fallen on six of the last nine sessions, with SOL at sub-$100 for the first time since March 27.

Solana-Based NFT Trading Volumes Fail to Impress

Last Thursday, OpenSea announced the launch of Solana-based NFT trading on the OpenSea marketplace.

In recent days, transaction numbers have failed to impress.

According to Dune Analytics, daily NFT transactions spiked on April 07, with 12,012 transactions before sliding to just 2,716 on Monday. Transaction volumes fell for a fourth consecutive day.

Trading volumes had also fallen sharply from an early spike before recovering on Monday.

A broad-based crypto sell-off was the main driver, however, as investors dumped riskier assets in response to a spike in 10-year U.S Treasury yields.

The markets are betting on a more aggressive FED rate path to curb inflation, which continues to weigh on riskier assets.

SOL Price Action

At the time of writing, Solana was up by 0.63% to 100.28.

Technical Indicators

SOL will need to move through the $103.3 pivot to make a move through the First Major Resistance Level at $108.3.

Broader market sentiment would need to improve to support a move through to $105.

In the event of an extended rally, SOL could test resistance at $115 and the Second Major Resistance Level at $117.0. The Third Major Resistance Level sits at $130.7.

Failure to move through the pivot would bring the First Major Support Level at $94.5 into play. Barring another extended sell-off throughout the day, Solana should avoid the Second Major Support Level at $89.5.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. Following Monday’s session, SOL currently sits below the 200-day EMA at $109.0. This morning, the 50-day EMA converged on the 100-day EMA. The 100-day EMA closed in on the 200-day EMA, a bearish signal.

A bearish cross of the 50-day EMA through the 100-day EMA would bring sub-$90 into play.