- The Solana network suffered a drop in performance due to a spike in high compute transactions, reducing its capacity.
- The network was plagued with failed transactions as developers worked on the resiliency.
- Analysts noted Solana's freefall and predicted the altcoin's drop to $140.
Solana price dropped over 7% in the past 24 hours. The network suffered from degraded performance, and the altcoin's price plunged.
Solana price dropped below $140 in the recent price drop
Solana network was subjected to severe criticism in response to the recent drop in the altcoin's performance. The network was hit by a spike in high compute transactions, reducing its capacity to several thousand transactions per second.
Therefore, transactions of users on the Solana network failed. Developers across the Solana ecosystem worked together to address these issues and improve the resilience of the Solana network.
The incident drove Solana price to freefall, and the altcoin has posted over 37% losses in the past 30 days.
@Trader_XO, a pseudonymous crypto analyst, has predicted a bounce in Solana price if it drops to $120.
$SOL
— Trader XO (@Trader_XO) January 6, 2022
$120 looks good for a swing trade (not looking to buy and hold spot at these levels).
Expecting a decent reaction around there if price tags it. pic.twitter.com/un4cKwYrih
@AltcoinSherpa, a crypto analyst and trader, evaluated the Solana price trend and predicted a drop to the $140 level. The analyst believes that the Bitcoin pullback fueled the Solana price drop since altcoins have historically reacted negatively.
$SOL: My plan for #Solana would just to be to wait for 140ish right now. I think that it will likely come if $BTC pulls back a bit. Lots of confluence in that area; 200D EMA, HVN, etc. pic.twitter.com/TEcVpw5hCp
— Altcoin Sherpa (@AltcoinSherpa) January 5, 2022
@ShardiB2, analyst and investor, argued that Solana was oversold before the drop to $140, and the altcoin is still in the same zone.
$SOL
— Don't Follow Shardi B If You Hate Money $UST (@ShardiB2) January 5, 2022
Look how oversold that got...still is... pic.twitter.com/qrwrSDRUWM
FXStreet analysts believe that Solana bears have taken over, which could push the altcoin's price lower. The analysts had predicted Solana price drop to $150.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.