- 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
Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound
Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.
US SEC may declare XRP a 'commodity' as Ripple settlement talks begins
The US SEC is considering declaring XRP as a commodity in the ongoing settlement talks with Ripple Labs. FOX News reports suggest Ethereum's regulatory status remains a key reference for XRP’s litigation verdict.
Cardano Price Prediction: ADA could hit $0.50 despite high probability of US Fed rate pause
Cardano price stabilized above $0.70 after posting another 5% decline in its 3rd consecutive losing day. Multiple ADA derivatives trading signals are leaning bullish, but the US trade war impact outweighs the positive shift in inflation indices.
Stablecoin regulatory bill receives green light during Banking Committee hearing
The US Senate Banking Committee voted on Thursday to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to establish proper regulations for stablecoin payments in the country.
Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation
Bitcoin price remained constrained within a tight 8% channel between $76,000 and $84,472 this week. With conflicting market catalysts preventing prolonged directional swings, here are key factors that moved BTC prices this week, as well as key indicators to watch in the weeks ahead.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.