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Solana Surges After Providing Update on Recent Outage

Solana Sol
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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.

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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.

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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  • SHBAZ

    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

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