With Monday’s massive sell-offs, SOL would need a move past $105 to escape another day in the red.
- Monday sessions had Solana losing 10.24%, ending the day near sub-$100.
- The broad-based cryptocurrency sell-off and declining SOL NFT transaction volumes triggered negative price moves in Solana.
- Technical indicators flash bearishness as Solana sits beneath the 200-day Exponential Moving Average.
Solana lost 10.24% yesterday, adding to Sunday’s 1.72% fall to end the day around the $99.65 mark. Broad market bearishness weighed on SOL as the alternative token ended the previous week with 18.91% losses.
The alt has seen downtrends on six of its nine sessions since revisiting the $143 mark on 2 April. For now, SOL hovers near sub-$100, levels never touched since 27 March.
SOL-Based NFT Volumes are not Impressive
OpenSea introduced SOL-base non-fungible token trading on the OpenSea marketplace last Thursday. However, the transactions count appeared unimpressive Dune analytics shows the transactions surged to 12,012 on 7 April before plunging to Monday lows of 2,716. Transaction volumes dropped for a 4th successive day. Also, trading volumes saw a sharp decline from early surges before the Monday recovery.
The broad-based sell-off drove SOL downswings as traders left riskier assets, reacting to the ten-year US Treasury yields surge. For now, pundits bet on a more aggressive Fed rate approach to fight inflation, which weighs on risky assets.
Solana Price Action
SOL traded around the $102 mark at this publication, gaining less than a percent overnight. The alt needs a move past the pivot of $103.3 for a move towards the initial massive resistance at $108.3. However, improved market sentiments are necessary for Solana to overcome the $105 level.
A stretched rally may see SOL testing the resistance near $115 and the second one at $117.9. The 3rd hurdle stands at the $130.7 mark.
Failure to keep the pivot away would see SOL hitting the first support floor at $94.5. Excluding massive downtrends throughout the day, SOL should prevent a move to the 2nd crucial support at $89.5.
The 4hr candle chart and EMAS flashed bearish signs. Monday’s downward actions have SOL staying beneath the 200-dayEMA of $109. Early sessions today saw the 50-dayEMA converging on the 100-dayEMA. The 100-dayEMA narrowed on the 200-dayEMA, revealing a pessimistic gesture. The 50-dayEMA cross 100-dayEMA on a bearish note would see SOL at sub-$90.
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