- Solana is on the rise, after shaking off concerns about the recent network outage that shook investor confidence.
- With the incident behind them, investors want to drive prices higher and potentially hit the $135 high in the coming weeks.
Solana (SOL) has in recent days impressed investors who are now eyeing a breakout. This performance comes just days after the network suffered an outage. This was the first outage in nearly a year, raising new concerns about the stability of the network.
Remarkably, the recent outage had little effect on the native token’s price, with the altcoin showing great price stability. In the past 24 hours, SOL has impressed with an 8% surge, extending its weekly gains by nearly 20% to reach $114.
The network outage, which took place at the start of the month, led to a drop to the mid-90s level, offering smart investors a chance to buy the dip. Matthew Sigel, head of digital assets at VanEck, attributed the outage to a failure in the BPF loader, or “Berkley Packet Filter,” which is responsible for deploying, upgrading, and executing programs on Solana. Developers were swift to identify the bug and rewrite the BPF code lines on the development network.
Although the five-hour outage raised concerns for some investors, it is clear that a majority saw this as a minor setback that was quickly shaken off. With prices finding support above $100, the altcoin is forging a path for an extreme move, with the first key resistance forming at $135.
In part, the recent rally was influenced by the bullish euphoria sweeping the wider crypto market and primarily driven by Bitcoin (BTC). The crypto king has been enjoying bullish attention from institutional interest, the upcoming halving event, and other macroeconomic and political factors.
Renowned pseudonymous cryptocurrency trader Wick indicated that SOL would see more gains after a pattern on the chart resembled big price moves in October and December last year. Wick’s discovery of a “shaded squeeze area” often heralds an impending extreme price movement, indicating the potential for an “extreme move incoming.”
Solana printing a shaded squeeze area. This usually warns up of an extreme move incoming!
This is max pain move on Solana as everyone put on shorts while the chain was down. I tried to warn everyone to stay bullish 💯
LFG 🟢🟢🟢 pic.twitter.com/bFGS70GxVg
— Wick (@ZeroHedge_) February 8, 2024
Other factors influencing SOL’s recent performance include the launch of Solana-based memecoins that have been enjoying massive popularity. One of these is BONK, which is trading for $0.00001248.
Solana Labs, which primarily develops the network, has recently announced the launch of its new phone. After its Saga phones sold out, Solana Mobile is working on Chapter 2, its next smartphone, and it has already recorded 60,000 preorders as demand soars. CEO Anatoly Yakovenko described the demand as “incredible” and a show of “a real community of dedicated users,” with NFT rewards among the perks of inviting other buyers.
Additionally, volumes in decentralized exchanges (DEX), NFT trading, and stablecoins on Solana have started to rival or have overtaken those on Ethereum.
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