On March 30, Solana (SOL) resumed its two-week ascent, thanks in part to its integration with OpenSea, the world’s largest nonfungible token (NFT) marketplace by volume. SOL’s price has risen by 4.5 percent in the last 24 hours to roughly $117 per token, its highest level since February 11, 2022.
The coin’s most recent upward rise increased its two-week paper returns to more than 50%. Nonetheless, SOL/USD is down 30% year to date, raising the prospect of a retracement as the price challenged its 200-day exponential moving average (200-day EMA; the blue wave) near $120 as resistance.
The 200-day EMA corresponded with the 0.236 Fibonacci retracement line established from the swing high of $266 to the swing low of $75 on the Fibonacci retracement graph. This adds another layer of selloff risk at $120, which is going to be a difficult level to breach.
The decision of OpenSea on March 29 to include Solana’s NFTs into its marketplace may have raised SOL’s pricing. According to Dune Analytics, the rally corresponded with Solana-based NFT platforms having their highest day in terms of volumes and transactions on March 29.
The total number of transactions completed on these Solana platforms surpassed 57,000. Meanwhile, their net worth was roughly 136,000 SOL, or about $15.2 million at the March 30 pricing, making it the biggest daily transaction volume witnessed inside Solana’s NFT ecosystem to far.
Surprisingly, on March 29, Magic Eden processed almost 80% of all reported transactions. Since its introduction in October 2021, the NFT marketplace, which recently secured $27 million in a Series A financing round headed by Paradigm, has consistently outperformed its counterparts throughout the Solana ecosystem.
Despite increased transactional activity, Solana NFT marketplaces have underperformed in terms of sales volume.
According to CryptoSlam statistics, the amount of owner-to-owner NFT sales has declined by more than 13% in the last 30 days to $147.41 million. Meanwhile, it has lost 30% of its value since January, when it was $202.19 million.
However, Solana is not alone in experiencing a drop in NFT sales, as Philip Gunwhy, a partner at sports NFT marketplace Blockasset, pointed out. He also believes that tighter crypto laws in the United States and China have impacted demand for NFTs.