SOL Up 5%: Does OpenSea Plan to Support Solana NFTs?

2022/01/28 10:46:03

Solana is currently trading at $92.78, with a 24-hour trading volume of a little over $2.5 billion. The coin is currently ranked #7, with a live market cap of slightly over $29 billion and a circulating supply of close to 315 million SOL coins. Yesterday, SOL/USDT closed at $89.42 after reaching a high of $94.40 and a low of $85.88 amid prevailing market gloom and rising US dollar prices.

Do you know what is causing an uptrend in SOL/USDT today? Keep reading and find out!

Does OpenSea Plan to Support Solana-based NFTs?

Recently, rumors were spreading on Twitter that the world's largest NFT marketplace, OpenSea, might be planning support for SOL-based NFTs. A popular tech blogger, Jane Manchun Wong, shared a series of screenshots of the website of OpenSea, showing Solana among the supported blockchains of Ethereum, Klatyn, and Polygon. They also revealed that the OpenSea marketplace was supporting the Solana wallet, Phantom.

According to available data, OpenSea was responsible for over 60% of NFT trades last year. It suggested that OpenSea wanted to maintain its current dominance in the NFT space. Perhaps, that's why OpenSea would like to support NFTs from another blockchain.

However, OpenSea has refused to confirm the rumor and comment on this matter. Instead, the spokesperson of OpenSea has said that they will comment when there is something to say. The Ethereum Killer gained significant market share, and it would seem logical for the leading marketplace to broaden its product offering to maintain its lead in the space.

What's Behind the Selling Pressure?

Network outages and poor performance have recently plagued Solana's reign. SOL has experienced six outages this month alone, in addition to the many more that occurred at the end of last year. Hence, it resulted in failed transactions and suspended withdrawals on the network.

Solana's Power Outage Problem

The most recent outage lasted more than 48 hours and resulted in forced liquidations of funds borrowed from lending platforms by many DeFi traders. Many traders and enthusiasts have been understandably frustrated by these growing issues, particularly when quick transactions are required to exit risky positions as the market enters a downtrend.

Solana's developers, for their part, announced following the latest outage that they had adopted 1.8.14, "which will attempt to mitigate the worst effects of this issue." Furthermore, additional enhancements are expected to be implemented over the next 8-12 weeks.

Solana has recently demonstrated excellent fundamentals, registering consecutive weeks of fund inflows when Bitcoin and Ethereum have experienced the opposite. NFL star Ndamukong Suh recently mentioned this on Twitter, adding that the network's ease of use, community, speed and safety are all factors in its favor, especially when compared to Ethereum.

Biden Administration Weighs on SOL/USDT

The crypto market exhibits a negative sentiment as the White House is looking for ways to regulate cryptocurrencies more cohesively. According to the White House, the current state of regulation is more scattered and not effective.

The Biden administration is expected to release an executive order in the coming weeks to ask federal agencies to assess the risks and opportunities that Bitcoin and altcoins pose.

The regulatory framework will cover bitcoin, cryptos, stablecoins, and NFTs. This news added further negative pressure on SOL/USDT.

Hawkish FOMC Pressures on SOL/USDT

Since Solana and the greenback have a negative correlation, the stronger dollar added to the losses of SOL/USDT. Fed Chair, Jerome Powell, kept the Fed Fund Rate unchanged; however, he signaled to taper the bond-buying program.

Besides, the US dollar is gaining strength amid a robust GDP, which rose to its highest level in four decades. These developments pushed the greenback to a 97.29 level, its highest since July 2020, and weighed heavily on SOL/USDT.

Despite a string of negative Solana news, SOL/USDT has increased by 5%. Let's look at some technical analysis.

Solana Price Chart on the Daily Timeframe | Source: SOL/USDT

Solana Price Forecast -Why $98 is Crucial for SOL?

Although the price of Solana has recovered during the day, the overall sentiment remains bearish. SOL/USDT price has moved at $89.45, facing strong resistance at $100 that's being extended by a 23.6% Fibonacci retracement mark. A spike in Solana coin demand could drive a further uptrend until $109 (50% Fib) and $129 (61.8%) Fibonacci levels.

On the daily time frame, SOL/USDT has formed a downward channel, which adds selling pressure on price movement. On the bearish side, the coin may find immediate support at $81.65. Therefore, a break below this level can drive downward some price action. Solana's next support stays at $65.85.

Since the RSI (Relative Strength Index) and Stoch RSI have entered the oversold zone, the odds of a bullish reversal remain high. The current market price of Solana is holding 50 days moving average, supporting bearish bias. Investors may keep an eye on $81.60 support, and failure to violate this may trigger a bullish correction. Let's keep an eye on the financial markets data to capture price action.

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