Home
News
- 1 SOL price lost 4.87% in the intraday session.
- 2 Solana NFT space was hard hit after major collections left, still trying to recover.
- 3 Q1 for Solana saw a rise by 100% in the price action.
Solana saw an uptick when a crucial news made it to the crypto space. Solflare, the Solana wallet, disclosed that compressed NFT will be available soon on Solana. This availability will play a crucial role in NFT scalability for Solana. Meanwhile, Solana has remarkably recovered from the fiasco of November and December 2022. It has been overwhelmingly positive with SOL price increasing by more than 100% since the start of Q1.
Solana NFT marketplace was hit hard when two major collections departed and switched to another network, causing a drop in SOL price. Last year, DeGods and y00ts called quits from the Solana network, and switched to different NFT marketplaces. Both NFT collections witnessed different levels of growth, leaving Solana to recover from the loss. The dispersal of the NFT collection was bad news for Solana, which cast a shadow over its transaction count and volume, for both the token and NFTs.
A Chart Tale
SOL price action forms a pennant pattern which presently tests the lower trendline. The downtick in SOL price tests the support near $20.00, which is broken can be a red flag for the investors. The support near $20.00 is crucial, and if the test is successful can set a bullish outlook for Solana. A robust rally is anticipated once the price breaches the breakout level near $22.00. After facing a slight resistance near $23.85, the projected rally can surge near $27.00. The neutral OBV suggests the market is waiting for either forces to take over. The EMA ribbon also supports the projection.
SOL price turned bearish with the current price action. The CMF fell sharply to the region below the baseline to signify the bearish momentum. The MACD nears a convergence and records minimized investor participation. The RSI moves about the half line to suggest the investor-neutral market, with gradually growing seller dominance.
The Peephole
The smaller time frame suggests a consistent rejection faced by Solana buyers. SOL price tried to establish a rally amid strong selling pressure. The CMF sees a downtick, indicating selling pressure. The MACD diverges negatively and records ascending seller bars. The RSI fell to the 40-range seller domination.
Conclusion
SOL price suffered after major NFT collections called quits last year. The recovering Solana NFT space could fuel a rally in SOL price. The price formed a pennant pattern and tested a crucial support at $20.00. The successful testing may result in formation of a bullish trend. Holders can look for a breakout at $22.00.
Technical levels
Support levels: $20.00 and $16.00
Resistance levels: $23.85 and $27.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
