Thu. Sep 21st, 2023

Solana saw its price crashing by 9.88% on Saturday, following network freeze news. The tumble left the alt down 31.1% this month, April. SOL should return beyond the $90 level to restore investors’ confidence. 

Vital Points  

  • Saturday session saw Solana losing 9.88% as enthusiasts responded to the network blackout news.
  • Bearish sentiment across the crypto spectrum added to the downward pressure before SOL secured early support today morning. 
  • Technical indicators highlight bearishness, with the altcoin staying beneath its 50-day Exponential Moving Average. 

Saturday trading sessions had Solana dropping 9.88% of its price. That extended the 4.88% Friday loss, and SOL traded near $84.65 as the day ended. Though the broad market sentiment contributed to the fall, network news weighed heavily. 

The month-end crash extended the bearish bias that started on 3 April. That altcoin failed to sustain the bullish start early in April, resorting to declines. After touching the $ 143.54-month peaks on 2 April, Solana plummeted to April lows on Saturday, exploring the $82.03 mark. The altcoin ended April with a 31.1% loss, reversing March’s 23.2% gain. 

7Hr Network Freeze Slumps Solana 

News of bots hitting SOL’s non-fungible token (NFT) minting pool, Candy Machine, on Saturday, emerged early today. The report suggests inbound traffic hiked to 4 million transaction requests plus 100 gigabits of data per second. 

Meanwhile, the bots resulted in validators failing to achieve consensus, translating to a 7-hour network outage. Though validators restored the ecosystem late on Saturday, core developers are yet to know how bot escape the security measures. 

Solana Price Action 

While writing these lines, Solana traded at $88.98, gaining approximately 5.13%. Mixed price actions early on the day had the alt declining to morning lows of $84.17 before climbing to the peaks of $89.89. 

SOL Technical Indicators 

For now, Solana should keep the pivot level at $87.19 away to challenge the initial massive resistance zone near $92.39. Nevertheless, improved broad market sentiments are crucial to exploring the $90 value area. 

Meanwhile, extended rallies would see SOL testing the 2nd critical resistance zone at $100.09. The altcoin’s third massive hurdle stands at $113.0. 

However, losing strength at the pivot level would catalyze downswings towards the initial support floor near the $79.44 zone. Excluding another stretched leg-down, SOL should avoid the $79 mark. Further weakness would have SOL at the second foothold near $74.31. 

The 4hr candle chart and the Exponential Moving Averages display a bearish sign for the alt. Solana stays beneath the 50-day Exponential Moving Average (currently around $96.97) after three successive sessions of a bloodbath. 

Early sessions today saw the 50-day EMA pulling back from the 100-dayEMA. Moreover, the 100-day Exponential Moving Average drifted from the 200-dayEMA, presenting a bearish gesture. Overcoming the 50-dayEMA would see the crypto exploring the $100 mark. 

Solana’s Co-Founder Trust BTC’s PoW Algorithm Will Impact Its Usage 

One of Solana’s co-founders, Anatoly Yakovenko, revealed his views about BTC’s PoW (Proof-of-Work) and how the consensus could impact the leading crypto assets in the future. Remember, Solana is a Proof-of-Stake blockchain. Yalovenko told CNBC that the main difference between Solana and Bitcoin is the former’s energy efficiency. 

He added that the energy needed to complete SOL transactions equals the energy consumed by two google searches, making Solana one of the most efficient among PoS networks. The Solana founder trusts more platforms would use PoS in the future, and Bitcoin should switch to retain users. 

The Crypto Market in Turmoil 

The broad crypto market continued with its downbeat mode, as Saturday’s late sessions saw extended plummets. While publishing this content, BTC hovers well beneath the $40K mark, changing hands near $37,972 at this publication. The bellwether crypto dropped 1.69% within the previous 24 hours. 

The crypto market cap reflects similar narratives. The market cap of all crypto assets stands at $1.71 trillion, following a 2.51% slump within the past day. Meanwhile, the overall market volume noted a 0.52% 24hr increase to $89.85 billion.

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