- Solana faced a major outage last week, which it initially explained was due to resource exhaustion.
- The Solana Foundation added that the network stall was due to a denial of service attack.
- Despite the roadblock last week, investors seemed to be undeterred as SOL investment inflows of nearly $5 million were recorded.
Solana faced a major roadblock last week, which witnessed its network go offline for over 17 hours. Despite the outage, SOL continued to gain traction among institutional investors as it recorded inflows of nearly $5 million last week.
Solana addresses reasons behind rare outage
The Solana Foundation issued an explanation that pointed out that the network was overwhelmed by a flood of incoming transactions, which reached over 400,000 per second at one point.
The network was flooded at the launch of an initial decentralized exchange (DEX) offering that was hosted on the Solana DeFi protocol Raydium. The transactions involved overburdened the network’s distributed nodes, leading to a crash due to the amount of memory being used. This eventually led to the halt of the network’s block production as it could not reach a consensus over the blockchain’s status.
The Solana Foundation’s report stated that the cause of the network stall was due to a denial of service attack. The blockchain’s validators decided to update and restart the network, which created a hard fork from the last confirmed block.
The effort to coordinate the restart effort required 80% of validators to get the network to start running again after 14 hours. According to the report, this issue was a rare occurrence, and the Solana Foundation aims to complete a further robust technical postmortem in the coming weeks.
Despite the setback on the network, Solana investment products witnessed inflows of $4.8 million last week. According to the report from CoinShares, this suggests that investors were happy to shrug off last week’s attack, further indicating that they view it as a small hurdle rather than an inherent issue with the network.
Solana price slides, but support is nearby
Solana price has fallen since the attack last week and appears to be searching for support. SOL may be trapped in a tight range for the time being but could discover a foothold nearby.
Solana price has been teetering within a descending parallel channel on the 4-hour chart. The prevailing chart pattern suggests that SOL is consolidating following its all-time high on September 9.
Although the technical pattern suggests that the sentiment is bearish, Solana price should be able to discover immediate support at the 200 four-hour Simple Moving Average (SMA) at $128. The following line of defense will emerge at the lower boundary of the parallel channel at $120, which sits near the 50% Fibonacci retracement level.
Given that Solana price was able to endure the attack without slicing below the downside trend line of the technical pattern, further losses are not expected unless a massive wave of sell orders materialize.
The next line of resistance for Solana price is at the middle boundary of the chart pattern at $142, which sits near the 61.8% Fibonacci retracement level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin: Retraces to around $75,000 after hitting new all-time high
Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.
Ethereum price jump spurs most significant ETF inflows in six weeks
After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory
The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.
SUI hits new all-time high fueled by Trump election win
Sui (SUI) edges down on Thursday and trades at around $2.24 after hitting a new all-time high (ATH) of $2.38 earlier in the day, buoyed by the victory of a crypto-friendly candidate, Donald Trump, in the US presidential election.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.