Key Takeaways:
- Solana NFT marketplace Formfunction announced it was shutting down.
- SOL price formed a bullish pattern with a +205% price target.
NEW DELHI (CoinChapter.com) — Solana-based NFT marketplace Formfunction announced it would shut down operations on Mar 29 as Solana NFT prices and trading volumes slumped. After plummeting due to the impact of the Alameda Research contagion, Solana’s recovery has been painfully slow.
Formfunction shared the news on Twitter, assuring users would continue to have ownership of their NFTs despite the shutdown. However, the marketplace advised users to de-list their existing NFTs before Mar 29.
Magellan, Formfunction’s head of community and marketing, also shared a statement announcing the shutting down of the 1/1 NFT platform.
The Formfunction executive claimed that though the firm was shutting down, the cofounders and team might launch a new product, “likely outside of the crypto & SOL space.“
Solana NFT marketplace volume has been falling since May 2022, with intermittent spikes breaking the downtrend occasionally.
However, in 2023, the market volume of Solana-based NFTs has steadily declined, which might be why Formfunction shut down its offices. Moreover, the floor price of NFTs on Solana also dropped, shedding over 83% from its ATH of $12,406 in Apr 2022.
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Additionally, the drop in SOL price during Q4 2022 did not help its NFT ecosystem.
SOL Price Moving Inside Bullish Pattern
Meanwhile, SOL price are moving inside a continuation pattern called the bull flag. Assets with strong uptrends usually form the pattern. Bull flags consist of a flag pole, resulting from a near-vertical rise in the crypto token’s prices.
A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.
Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level. Per the rules of technical analysis, SOL price might jump 205% to reach $59.5 if bullish tailwinds favor the Solana token.
More Bullish Signal For Solana Coming From Its Momentum Oscillator
SOL price recovered slightly on Mar 16 after losing nearly 7.7% the previous day. The Solana token rose 38% since Mar 10 to form a daily high of $22.2 on Mar 14. However, a strong resistance confluence of 20-day (red wave), 50-day (purple wave), and 100-day (blue wave) rebuffed SOL’s uptrend.
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Moreover, the long upper wicks on the recent Solana price daily candles underscore the bearish pressure against SOL. If the token fails to hold its current price level, SOL could fall to immediate support near $18.4.
Breaching the immediate support level could force the Solana token price test support near $16.3.
On the other hand, the momentum oscillator MACD is forecasting bullish signals for the Solana token.
The MACD line moved above its signal line to form a bullish crossover on Mar 16. Positive bars on the indicator’s histogram are expanding, indicating that the MACD line (difference between 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD).
If the SOL price starts increasing, it will face resistance from the EMA confluence near $20.5. However, a break and hold above immediate resistance might help the Solana token price rise to resistance near $23.5 before downside corrections pare gains.
