Solana Price Prediction: Is It A Good Time To Buy SOL Dip As Network Outage Causes Uncertainty?

Solana Price Prediction: SOL has recently faced significant price fluctuations. Over the last fortnight, the value of Solana (SOL) has seen an uptick but struggled to surpass the critical resistance mark at $100.  The recent technical analysis of the daily time frame reveals that Solana’s value has been caught in a descending parallel channel for the last month, bottoming out at $79 on January 23, 2024. Solana price is trading at $93.94, reflecting a 3.63% decrease in the last 24 hours.

Will Solana’s Recent Breakout Be Sustained Amidst Market Turmoil?

After breaking free from the descending channel, Solana’s price failed to surpass the significant horizontal resistance. The rejection at this key level has sent Solana back toward the channel’s resistance trend line. In the last week alone, the cryptocurrency has seen over a 9% decline, hinting at a bearish trend continuation.

Solana price prediction

Solana’s price movement remained relatively stagnant for several weeks, fluctuating between $90 and $99. This period of minimal price change mirrors the larger trend of wariness in the cryptocurrency market. This cautious sentiment has led to a 10% correction in Solana’s value, painting a cautiously bearish picture.

As Network Outages Plague Solana, Can SOL Hit $20?

The Solana network recently suffered a major outage on February 06, halting block progression. Core engineers and validators were promptly engaged in investigating the issue. A fix was identified, and a new version for validators to upgrade is being developed. This update aims to address the cause of the network halt. Validator operators, responsible for maintaining blockchain integrity and processing transactions, are now preparing for a network upgrade and restart.

The process of generating snapshots from local ledger states, capturing the blockchain data right before the outage is underway. This halt in the Solana network is reminiscent of a similar downtime that occurred in April 2023, lasting nearly two days. Outages raise concerns over Solana’s stability and could potentially lead to a significant drop in its price.

Technical Analysis: Bearish Trends and Investor Sentiment

If the bearish trend in SOL price strengthens, a fall toward the $60 support level could be imminent. If this downward trajectory continues, a dip to as low as $20 may not be out of the question, marking a significant shift in market sentiment. Conversely, a resurgence in bullish momentum could propel SOL towards the $110 resistance level.

The Moving Average Convergence Divergence (MACD) indicates a bearish trend, as both the MACD and signal lines are below the zero mark. The Relative Strength Index (RSI) on the daily chart hovers below the 50 level, reinforcing the bearish momentum in the short term. Additionally, the Average Directional Index (ADX) underscores the prevailing bearish sentiment in the market.

Solana price chart: Tradingview

The future of Solana remains uncertain, with its recent network outage adding to the already cautious investor sentiment. The technical indicators point towards a bearish trend, but market dynamics can change rapidly, as with any cryptocurrency. Investors and enthusiasts closely monitor the situation, awaiting Solana’s next move in the volatile world of cryptocurrencies.

Related Articles

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.