Key Takeaways:
- Smart contract platform Solana's SOL token climbed over $100 on Mar. 25
- The upside move came in the wake of a partnership with gaming giant Krafton
- Solana's market share continued to decline despite the price uptrend
YEREVAN (CoinChapter.com) – SOL, the in-house token of Ethereum competitor Solana, traded at over $102 in the European session opening bell on Mar. 25. Moreover, the digital asset was the biggest gainer in the top 10 cryptos, jumping nearly 6% in the previous 24 hours.
In detail, the SOL/USD price chart followed Bitcoin’s lead and sought additional support from the 20-day exponential moving average (EMA-20; red wave on the chart below). Moreover, the digital asset broke through a support-turned-resistance trendline that capped SOL’s rallies throughout 2022.
Also read: Zebec (ZBC) coin launches on exchanges after raising $28 million; Solana benefits.
The said trendline also constituted a part of a bullish formation, dubbed the Falling Wedge. The latter entails two converging trendlines that envelop the price action and forecast a bullish break once the pattern is exhausted. Compliant with the prediction, SOL broke the mentioned resistance on Mar. 23.
Furthermore, the token’s relative strength index (RSI; purple graph) charted at a strong 65, suggesting high return expectations from traders, confirmed by the green spike in trading volumes.
Also read: Solana price risks plunging by over 60% next as SOL nears key inflection point.
Solana token’s upside move came shortly after the network signed a deal with Krafton, the publisher of popular battle royale game Player Unknown’s Battlegrounds (PUBG).
Solana + Krafton
In short, Krafton announced on Mar. 23 that it is partnering with Solana Labs to develop blockchain games on the network.
The South Korean online gaming giant reported $1.57 billion in revenue in 2021, 13% higher than the prior year. Thus, the move into play-to-earn blockchain-based gaming would likely benefit the company further as P2E gaming grows.
According to analytical platform data.ai, consumer spending on blockchain-based P2E gaming swelled to $116 billion in 2021. Therefore, Solana, too, could expect further ecosystem growth and the launch of new projects. For example, Web3 gaming startup Block Tackle shared Tuesday that it is developing a Solana NFT-based skateboarding game.
Also read: More downside risks for Solana as SOL forms head and shoulders pattern.
However, Solana’s DeFi market share continued to shrink, as it went from 4.6% on Jan. 1 to 3.1% on Mar. 25. According to DeFi tracking platform DeFiLlama, Solana’s total value locked (TVL) stood at $5 billion on Friday.
