SOL reached $100 after breaking a significant resistance on February 9, with potential to extend gains to $126.40 if buying pressure persists. Analysts foresee a bullish outlook for SOL in both the short and long term.
During the Chinese New Year celebrated on February 9, crypto prices, including Solana (SOL), received a boost. SOL’s price reached $110, rising by 10.12% in the last 24 hours according to CoinMarketCap data. Notably, this recovery coincided with the Solana development team’s report on the cause of the recent 5-hour outage.
Solana Outage: Causes and Impact
On Tuesday, February 6, Solana encountered a blackout, leading to transaction failures on the blockchain. During this period, the price of SOL experienced a significant decline.
In a recent update, Solana identified that the issue stemmed from the LoadedPrograms encountering an infinite loop during network replay. This resulted in validators being stuck on a single block, impeding the processing of other transactions.
To provide context, an infinite loop refers to a series of instructions that continuously run programs without termination. Solana further clarified that at the time of the outage, over 95% of the cluster stake was operating on version 1.17, causing most validators to stall on this block.
SOL Price Analysis and Potential Movements
On the 4-hour chart, heightened buying pressure propelled SOL above the $101.76 resistance level. Sustained buying momentum could push the token’s price further towards $120 in the short term. However, maintaining support at $95.11 is crucial for this upward trajectory.
The Relative Strength Index (RSI) at 69.20 indicates increased buying momentum and suggests potential for further growth. Yet, if the RSI surpasses 70.00, signaling overbought conditions, SOL may retreat to $97.74 before potentially rebounding if bullish sentiment persists.
Moreover, the Moving Average Convergence Divergence (MACD) remains in the positive region, with the 12-EMA (blue) above the 26-EMA (orange), indicating clear upside potential for SOL.
SOL/USD 4-Hour Chart (Source: TradingView)
If bullish momentum prevails, SOL could reach $126.40, its level last seen on Christmas day. Conversely, profit-taking by traders could lead to a drop below $100 in the interim.
Analyst Predictions for SOL’s Future
Recent forecasts from various analysts indicate a bullish outlook for the L1 token. One investor, CryptoJelleNL, suggested on X that SOL could replicate Ethereum’s (ETH) trajectory in 2022, soaring from $350 to $3500 within a few months. If SOL follows a similar path, it could reach $1000 by the end of the year.
Matthew Dixon, CEO of the crypto rating platform Evia, provided a more cautious short-term prediction. Despite the recent technical glitch, Dixon believes SOL’s rally will persist, foreseeing even higher prices ahead.
$SOL 120 could be a fair upside target for #Solana where the c wave = a wave (making up a larger B wave) before we get a further downside correction.
Therefore short term and long term positive with a medium term correction on the cards pic.twitter.com/uVYC3OTC5m— Matthew Dixon – CEO Evai (@mdtrade) February 9, 2024
According to his analysis, SOL could surpass $132 in the short term. However, Dixon anticipates a correction afterward, potentially driving the token down to $92 before another uptrend.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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