- Price Dip and Network Congestion: SOL experienced a temporary setback, with its price dropping to $93 on February 6th, attributed to network congestion and a market crash.
- Swift Rebound: Solana demonstrated resilience by swiftly getting its network back online, accompanied by a remarkable price recovery of 20% within a span of 4 days.
- Outperformance Against BTC: Despite market challenges, SOL/BTC saw a notable surge of 4.5% the previous week, positioning Solana as one of the select altcoins that outperformed Bitcoin, as reported by Santiment.
- Buying Pressure from Negative Sentiment: Santiment suggests that the negative sentiment stemming from the recent network outage contributed to increased buying pressure, subsequently aiding the rise in $SOL's price.
- Chart Signals Potential Breakout: Analyzing the SOL/USD chart reveals a promising sign, indicating a potential breakthrough above the $126 resistance level. This suggests a positive trajectory for Solana's price in the near future.
In a recent upheaval, Solana (SOL) encountered a network outage that tested its resilience. Despite this setback, Solana has swiftly rebounded, showcasing its robustness amidst adversity.
Following an official statement addressing the technical glitch, Solana has not only recovered but also demonstrated remarkable performance, outpacing Bitcoin as reported by Santiment.
The outage, which rendered the SOL mainnet inaccessible for a period of five hours, was attributed to a sudden surge in transaction volume, causing network slowdown and subsequent crash.
However, collaborative efforts between validators and the SOL team facilitated a prompt network restart, restoring functionality and addressing the underlying issue.
While the incident initially impacted SOL's price, resulting in a temporary decline to $93, the cryptocurrency has since regained momentum, currently trading at $108.03, marking a notable recovery.
Santiment's analysis indicates SOL's exceptional performance relative to Bitcoin, with SOL/BTC registering a significant uptick of +4.5% as of February 10th.
Furthermore, SOL's development activity has resumed, with the network's challenges inadvertently contributing to its price enhancement, according to Santiment.
Technically, SOL has demonstrated a strong rebound from the $79 support level, reaffirming its upward trajectory. With SOL utilizing the 20-day EMA as support and poised to breach the $126.36 high from December 25th, the cryptocurrency shows promise of sustained growth.
However, potential fluctuations may see SOL revisiting support levels around $108-$106 in the event of a price decline from the $126 mark.
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