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

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Solana (SOL) continued its two-week uptrend on March 30, rising, partly, owing to its integration with OpenSea, the world’s biggest nonfungible token (NFT) marketplace by quantity.

SOL value rises to multi-week highs

SOL’s value gained 4.5% up to now 24 hours to round $117 per token, its finest degree since Feb. 11, 2022.

The coin’s newest transfer upside pushed its two-week paper returns to over 50%. Nonetheless, SOL/USD remains to be down 30% on a year-to-date timeframe, risking pullback as the worth examined its 200-day exponential shifting common (200-day EMA; the blue wave) close to $120 as resistance.

SOL/USD day by day value chart. Supply: TradingView

The 200-day EMA coincided with the 0.236 Fib line of the Fibonacci retracement graph — drawn from $266-swing excessive to $75-swing low. This provides one other layer of selloff dangers close to $120, which is able to seemingly show to be a tough degree to interrupt. 

SOL NFT transactions hit document excessive

OpenSea’s choice to combine Solana’s NFTs into its market on March 29 may need boosted SOL’s value. The rally additionally coincided with Solana-based NFT marketplaces recording their finest day by way of volumes and transactions on March 29, according to information from Dune Analytics. 

The entire variety of transactions executed throughout these Solana platforms crossed 57,000. In the meantime, their web valuation got here out to be round 136,000 SOL, roughly $15.2 million at March 30’s value, making it the biggest day by day transaction quantity noticed inside Solana’s NFT ecosystem up to now.

Solana NFT day by day transaction quantity. Supply: Dune Analytics

Curiously, Magic Eden processed about 80% of the total reported transactions on March 29. The NFT market, which not too long ago raised $27 million in a Series A funding spherical led by Paradigm, has been constantly outperforming its friends throughout the Solana ecosystem since its launch in October 2021. 

However NFT gross sales quantity downtrend stays

Solana NFT marketplaces have been underperforming by way of gross sales quantity, regardless of witnessing development of their transactional exercise.

The owner-to-owner NFT gross sales quantity has dropped by greater than 13% to $147.41 million up to now 30 days, according to information offered by CryptoSlam. In the meantime, it has shed 30% in comparison with January’s $202.19 million determine.

Solana gross sales quantity. Supply: CryptoSlam

Nonetheless, Solana will not be alone with similar declines in NFT sales across other chains, famous Philip Gunwhy, a companion at sports activities NFT market Blockasset. He provides that increased crypto regulations in the USA and China may need dampened the demand for NFTs as effectively.

Associated: OpenSea set to integrate Solana in April, further expanding the NFT ecosystem

As an illustration, Ethereum (ETH), the main good contract platform, which hosts more than 90% of all the NFT volumes, witnessed a decline of almost 38% in gross sales volumes within the final 30 days, nearly thrice greater than Solana. 

Ethereum NFT gross sales quantity and distinctive patrons. Supply: CryptoSlam

Different blockchain initiatives, together with Avalanche (AVAX), Ronin and Flow, additionally suffered 30%–60% drops of their NFT gross sales quantity durin the identical interval.

“Clearly, the extent of gross sales is proportional to the variety of customers, which is presently lowering within the majority of marketplaces,” Gunwhy defined.

“NFT market correlates with investor sentiment fairly than basic components, it is a development that we can not ignore in the interim.”

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it is best to conduct your individual analysis when making a choice.