Solana (SOL) Price Briefly Rebounds After Steep Fall Amid Outage

Solana (SOL) Price Briefly Rebounds After Steep Fall Amid Outage
  • The losses suffered by SOL came from the blockchain being shut down briefly.
  • This week’s five-hour Solana outage was not the first this year.

Solana (SOL) has been the worst-performing major cryptocurrency this week following a shutdown. Over the past seven days, the token has fallen by more than 11% and is now trading at $39.22, the lowest since August 2021. The losses suffered by SOL came from the blockchain being shut down earlier this week due to a mistake in block generation.

SOL/USDT: Source: TradingView

Investors Losing Trust Due to Frequent Outages

The outage sparked a social media outcry against the blockchain; for a matter of fact, it not being the first in Solana this year. At least a few people were considering quitting the project. Many others made fun of the blockchains inability to maintain its stability.

This week’s five-hour Solana outage was not the first this year. Since May, outages have plagued the blockchain occasionally. Earlier last month, NFT minting bots caused a seven-hour outage due to a backlog of transactions on the blockchain.

However, this week’s downtime resulted in a steeper drop in pricing than previously seen. Trading out of SOL might signify that investors have lost trust in the blockchain. SOL’s outsized slide this week may have been exacerbated by a sluggish trading environment, which has done nothing to aid the coin.

SOL may confirm a bearish pattern if it falls below $38 this week. If the bearish trend continues, the token might go as low as $24, its next support level. There’s a good chance SOL will drop by over 40% over the next several weeks if it continues to trade in a falling triangle pattern. Although at the time of writing, SOL price has rebounded and is trying to cross the $40 mark.

A mere $2 billion separates Solana and Dogecoin as the ninth and tenth most valuable cryptocurrencies. The recent deployment of Chainlink price has not saved SOL price feeds and increased NFT minting on the blockchain.

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.