News

Solana Bounces Back After Outage, Outperforming Bitcoin: FUD Turns Fuel for Price Surge

Solana has weathered the last network outage and has now surged 20% in 4 days, while, outperforming Bitcoin.

Jim Haastrup

Key Insights

  • SOL's price dipped to $93 due to network congestion and a crash on February 6th.
  • Solana rebounded swiftly, with the network back online, and a price recovery of 20% within 4 days.
  • SOL/BTC surged by 4.5% last week, making SOL one of the few altcoins to outperform BTC, according to Santiment.
  • Santiment says that the negative sentiment from last week's outage fueled the buying pressure that aided $SOL's price increase.
  • The SOL/USD chart indicates a potential break above the $126 resistance level.

SOL has turned out to be one of the most resilient cryptocurrencies on the market, despite a network outage that rocked the network, literally to its core last week.

Solana, so far, has recovered from the technical glitch, has released an official statement, and appears to be regaining its momentum by outperforming Bitcoin according to Santiment.

Solana Network Outage

According to an official announcement, the SOL mainnet experienced a massive issue on Tuesday, that rendered the network unavailable for five hours.

In detail, a significant spike in transaction volume hit the network, causing it to slow down and eventually crash.

The validators and the SOL team worked together to restart the network, bringing it back up to speed and fixing the issue.

Earlier in the week, this outage affected the price of SOL and others like GMT (GMT), Raydium (RAY), and Access Protocol (ACS).

Even UpBit suspended withdrawals of $SOL and other SOL-based tokens.

Solana declined to around $93, which was the lowest point it had ever been in the previous seven days.

Solana Bounces Back

Despite the setback, SOL has recovered well and is once again on the rise. At the time of writing, SOL is trading for $108.03, up 2.11% over the last day.

Solana's price action | Source: CoinMarketCap

Even more interesting is how SOL's price performance has surpassed that of Bitcoin, according to Santiment.

Santiment went further to say that SOL is one of the few altcoins that have outperformed Bitcoin this week, after surging back above $102.

Solana outperforming Bitcoin

Santiment says that as of 10 February, SOL/BTC is +4.5%.

Furthermore, according to Santiment, SOL's development activity is now back in business, and the FUD generated by the network's problems have turned out to be a helper for the cryptocurrency's price.

Solana's Price Action

SOL appears to have confirmed a rebound from the ascending trendline shown below:

Solana's price action

The cryptocurrency rebounded powerfully from the $79 support and is now back above the 20-day EMA as shown above.

SOL is now using this moving average as support and appears to be navigating the price levels above $93.6 pretty well.

The next hurdle that SOL has to worry about is the $126.36 high from 25 December, last year.

Solana appears capable of reaching and even breaking this price level. However, if for any reason, we see a price decline from $126, SOL will inevitably revisit anywhere between $108 and $106, or even lower.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.