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Solana Network Suffers Major Outage, SOL Price Dips

Solana Network Suffers Major Outage, SOL Price Dips

Solana Stumbles

The Solana blockchain, known for its speed and scalability, encountered a major outage on February 6th, 2024, bringing transactions and block production to a halt. This incident, the eleventh in two years, highlights ongoing concerns about the network’s stability and raises questions about its future.

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Solana Network Outage Details

  • Started on February 6th, 10:22 UTC, lasting several hours.
  • Block production halted, impacting transactions and applications.
  • Validators identified an issue and built a fix, requiring a network restart and snapshot generation.
  • Crypto exchanges like Upbit suspended SOL and other Solana-based token deposits/withdrawals.

Market Impact

  • SOL price initially dropped over 2% to $94 after the news.
  • Ongoing uncertainty could potentially impact investor confidence and adoption.

SOL/USD Technical Analysis

  • Short-Term: The recent dip presents a potential buying opportunity for traders with strong risk tolerance. However, the outage adds to existing technical concerns.
  • RSI: Currently at 52, indicating neutral territory. Price needs to break above $100 and hold to regain bullish momentum.
  • Support/Resistance: Immediate support lies around $88, followed by $80. Key resistance sits at $100 and then $115.

Outlook for Solana (SOL)

While the network appears on track for a restart, the outage raises questions about Solana’s long-term viability. Investors and traders should consider:

  • Severity and frequency of outages: This latest incident raises concerns about reliability and potential impact on ecosystem growth.
  • Underlying cause and developer response: Understanding the root cause and the implemented fix will be crucial for assessing future stability.
  • Market sentiment and competitor landscape: Broader market trends and the performance of competing blockchains will influence SOL’s price trajectory.
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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