SOL Surges: Solana's Transparency Amid Recent Outage

On Feb 9, the Chinese New Year brought favorable news for cryptocurrency prices, and Solana (SOL) did not remain unaffected. Currently, SOL is valued at $110, following unsuccessful attempts to reach this range in previous instances.

The surge indicated a 10.12% rise in the token within the past 24 hours, according to CoinMarketCap data. Intriguingly, this rebound coincided with the day the Solana development team released its report explaining the cause of the 5-hour outage earlier in the week.

On Feb 6, a blackout occurred on the Solana blockchain, preventing users from executing transactions successfully. According to Coin Edition’s report, the price of SOL also witnessed a significant decline during this outage.

In a recent disclosure, Solana highlighted that the LoadedPrograms encountered an infinite loop issue during network replay. This resulted in validators getting stuck on a single block, impeding the processing of other transactions.

An infinite loop refers to a series of instructions that persistently run programs without concluding. Solana clarified that over 95% of the cluster stake was utilizing version 1.17 during the outage, causing nearly all validators to be stuck on this particular block.

Technical Glitch, Yet SOL Eyes $132

On the 4-hour timeframe, heightened buying pressure propelled SOL to surpass the $101.76 resistance level. Should SOL sustain this buying momentum, there is potential for the token to advance further and reach $120 in the near term.

However, this scenario holds only if the bulls successfully protect the lower support level at $95.11. The Relative Strength Index (RSI) position at 69.20 indicates a rise in buying momentum, suggesting potential for further growth.

SOL, however, may be regarded as overbought if the RSI crosses 70.00. In this case, the price may revert to $97.74. Yet, SOL’s price may increase if bulls keep piling on buy orders.

Dixon suggests that despite the recent technical glitch, SOL’s upward momentum may persist, and he anticipates a substantial price increase shortly. Referring to the chart he provided, there is a possibility that SOL could exceed $132 in the short term. However, a subsequent correction might bring the token down to $92 before experiencing another upward movement.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.