Solana Price Plummeted To $142 As Transactions Flooded Network Causing Panic
- Solana price suffers “a denial-of-service disruption” due to a surge in transactions on the network.
- SOL recovers above $160 after briefly testing lower levels at $142, more action above $170 is anticipated.
Solana plunged to $150, losing more than 15% of its value within a short time during the Asian hours on Wednesday. Prior, the smart contract token had recovered to $172 and danced between $165 and $170 for nearly 48 hours.
Solana Network Goes Down
According to price data from Binance, Solana tumbled to $142 as the network experienced a high volume of tractions. The volatility quickly abated, allowing SOL to regain ground above $150 and later past $160.
Fear gripped investors as news spread that the Solana network had gone offline. According to Cointelegraph, the incident is precisely referred to as “a denial-of-service disruption.” Nonetheless, Solana’s Twitter account has said on Tuesday that the mainnet beta underwent an intermittent instability that lasted for 45 minutes.
About six hours after the announcement, a massive transaction surge, totaling roughly 400,000 per second, overwhelmed the network, resulting in an initial forking event. According to Solana Status:
“Solana Mainnet Beta encountered a large increase in transaction load, which peaked at 400,000 TPS. These transactions flooded the transaction processing queue, and the lack of prioritization of network-critical messaging caused the network to start forking.
This forking led to excessive memory consumption, causing some nodes to go offline. Engineers across the ecosystem attempted to stabilize the network but were unsuccessful.”
Solana Status later told the community that the validators were restarting the network and getting ready for a new release, with instruction posted in discord.
Solana Price Settles Above $160 Post The Extreme Volatility
Solana is trading at $161 at the time of writing. Although the sharp drop touched $142, it was only a candlewick. The primary support lies at $150, as highlighted by the 50 Simple Moving Average (SMA), and helped Solana regain the position above $160.
On the upside, a descending trend line currently limits SOL’s movement. Slicing through this line could clear the path for Solana to make headway to $170.
Realize that the Moving Average Convergence Divergence (MACD) is about to flip bullish based on the four-hour chart. The call to buy will come into the picture as the 12-day EMA crosses above the 26-day EMA. Besides, if the MACD closes the gap to the mean line and extends into the positive region, we expect Solana to push the bullish mission considerably above $170.
SOL/USD Four-Hour Chart
The improving bullish outlook has been reinforced by the Relative Strength Index (RSI). This technical index tracks Solana’s trend and measures its strength. An approach to the overbought region (starting from 70) will affirm the bullish grip on the price.