Last week, Solana (SOL) encountered challenges as its transaction failure rate surpassed 75%. In response, the core team behind Solana has been diligently working to identify and resolve the network’s congestion issues.
The price of SOL dropped by 7.8%, causing concern among some users about the condition of the network. However, certain analysts anticipate a brighter future for SOL in the near term.
Is Solana Poised For A Bounce?
Based on the analysis of cryptocurrency expert Bluntz, the price of Solana may have hit its lowest point following the news of network congestion. He had anticipated that the value of SOL could potentially drop to around $160 prior to any potential rebound.
Based on his graph, the trend was exhibiting a wavy ABC structure. The asset was hovering near the $184 mark during this period, indicating that the anticipated decline to $160 (the C wave) had not been verified yet.
The analyst kept an open mind about the potential for a lateral adjustment in the sol/usd exchange rate. However, he found it unlikely that the rate would drop significantly below the 160 mark.
On Wednesday, the price of SOL hit a record low of $162, marking what some analysts refer to as the “A wave bottom.” Despite being slightly below his anticipated price, this level appears to signify the end of SOL‘s downward trend for this particular market analysis. Consequently, Bluntz expects the token’s value to continue rising from this point.
An analyst named Immortal Crypto noted that Solana’s price has been fluctuating between the levels of $210 and $160, which they consider a “healthy range.” They added that any significant departure from this range could potentially lead to substantial gains or losses.
Analyst Altcoin Sherpa anticipates that SOL may decrease to around $140, a price point it last touched nearly a month ago, despite any projected rebound in the market.
Will The Network Upgrade Help SOL?
Over the past day, Solana’s price has seen a 6% increase, bouncing back from its recent dip to around $162. In contrast, there was a 7.8% decrease in value over the last week. However, over the last month, the price has experienced a significant surge of 13.5%.
In the last 24 hours, there was a 28% rise in the token’s daily trading volume. This indicates an uptick in market activity for the token.
Despite the ongoing issues with the network, investors express worry and believe that the token’s value may not increase significantly until any technical difficulties are resolved.
Solana is known for its swift transaction processing and affordable fees. Yet, the high incidence of on-chain failures poses challenges for both end-users and developers.
In response to the criticism and worries raised by some, Austin Federa, who leads strategy at the Solana Foundation, shared his perspective on the issue.
Core developers from Anza, Firedancer, Jito, and others are putting in long hours (and getting little sleep) to strengthen Solana’s networking infrastructure in response to the unparalleled usage the network is experiencing currently.
There’s been a lot of threads on what exactly is causing the…
— Austin Federa | (@Austin_Federa) April 10, 2024
Based on Federa’s report, the team of core Solana developers is putting in extra effort to strengthen the network’s infrastructure and handle the increased traffic currently facing the Solana chain.
The developer acknowledged that the current software system’s ability to manage heavy traffic is insufficient. In response, the team responsible for the core protocol is focusing on enhancing it through testing and implementation of upgrades. They prefer this approach over raising fees as a final solution.
At the time of this writing, SOL is trading at $174.57.
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2024-04-11 23:11