Solana's 24-Hour Rollercoaster: From $93 to $95 - Unraveling the Recent Developments

Solana’s 24-Hour Rollercoaster: From $93 to $95 – Unraveling the Recent Developments

Solana’s Rollercoaster Ride: February 6th Outage

Solana experienced a significant downtime of nearly five hours on the 6th of February, leading to increased volatility in the price of SOL.

Impact on Sentiment

The latest outage had a notable impact on the sentiment surrounding Solana. The negative sentiment increased as a result of the downtime.

  • SOL’s price dropped to $93.4 during the outage.
  • However, it quickly recovered and surpassed the $95 mark.

While Solana had maintained a stable performance in recent months, the streak was interrupted by the mainnet outage on February 6th.

Engineering Response

Solana validators took to X (formerly Twitter) to report the incident. Engineers promptly identified the issue and implemented a solution through a new network release named v1.17.20. This release included a patch to address the problem that caused the cluster to halt.

Despite the brief duration of the outage, it had a noticeable impact on the sentiment around Solana. AMBCrypto’s analysis of Santiment’s data revealed a spike in SOL’s Social Dominance during the outage as people discussed the issue online.

Due to the downtime, negative sentiment around the blockchain also saw an increase during this period.

Price Action and Recovery

The outage had repercussions on SOL’s price action. Following the news, SOL’s price declined to $93.4. However, the token demonstrated resilience and quickly rebounded, surpassing the $95 mark on the same day.

According to CoinMarketCap, SOL recorded a 0.6% increase in the last 24 hours. As of now, SOL is trading at $95.86, boasting a market capitalization of over $41.8 billion and securing its position as the fifth-largest cryptocurrency.

Despite the rapid recovery in price, investors are advised not to expect a major uptrend in the short term. Several market indicators, including Solana’s Relative Strength Index (RSI) and Money Flow Index (MFI), suggest a sideways trend and slow-moving days.

Furthermore, the MACD (Moving Average Convergence Divergence) displayed the potential for a bearish crossover, indicating the possibility of a price decline in the near future.

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