- The second congestion in a week hit the Solana network due to high computational transactions.
- The world’s largest exchange notified users that Solana withdrawals could be suspended from time to time.
- Analysts predict a short-term bounce in Solana price based on the volume profile and the 200-day exponential moving average.
Solana has suffered from network outages several times over the past eight weeks. The spike in transactions on the network directly reduces its capacity and results in transaction failure.
Solana network suffers from failed transactions
While facilitating high computation transactions, the Solana network experiences massive congestion. This hampers the network’s ability to process transactions. The world’s largest exchange Binance announced the suspension of Solana withdrawals from time to time.
The exchange cited the concerns around the Solana network’s outage and congestion. Repeated network outages have negatively impacted trader sentiment on Solana.
Analysts have evaluated the Solana price trend and predicted a short-term bounce in the altcoin. @AltcoinSherpa, a pseudonymous crypto analyst, believes that Solana price may not have bullish potential based on the given volume profile and the 200-day exponential moving average of the area.
The analyst believes there may be a short-term bounce in Solana price, at a minimum.
$SOL: Given volume profile and the 200D EMA of this area, I think this area is a solid area to bid. While I'm not sure what the longer time frame outlook is for this, I think that we should see some short term bounce at a minimum. #Solana pic.twitter.com/DGD5MeBUJf
— Altcoin Sherpa (@AltcoinSherpa) January 8, 2022
The spike in fees on Ethereum layer-1 solutions has resulted in a migration of projects and users to the Solana network. The increasing migration and on-chain activity have negatively impacted Solana price and the network’s performance.
Frequent outages have resulted in increased critique from users in the Solana ecosystem. Exchanges have started notifying users of the implications of failed transactions on the Solana network.
FXStreet analysts believe that Solana price shows bullish divergence. Analysts have set a target of $157 for Solana price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.