Solana (SOL) experienced difficulties last week as its network transaction failure rate exceeded 75%. Since then, Solana’s core contributors have been working to find the congestion problem.
The price of SOL fell 7.8% and users seemed worried about the state of the network. Nonetheless, some analysts predict more optimistic performance for SOL soon.
Is Solana ready for a rebound?
According to cryptocurrency analyst Bluntz, Solana’s decline has reached a bottom. After news of the network congestion broke, analysts predicted that SOL’s price would fall to $160 before rebounding.
According to his chart, the performance began to show an ABC zigzag pattern. At the time, the token was trading at a price range of $184, which means that the C wave of $160 has not yet been confirmed.
The analyst kept an open mind about a “possible sideways correction.” Nonetheless, he thought “it doesn’t make sense for sol/usd to fall below 160.”
On Wednesday, SOL reached a low of $162, sweeping the “A wave low.” For the analyst, this appears to be the low point for SOL price, despite being $2 short of his forecast. As a result, Bluntz believes the token price will “go higher from here.”
ABC pattern on the SOL monthly chart. Source: Bluntz
Another analyst, Immortal Crypto, said: pointed out SOL showed a “good range” between $210 and $160. According to the analyst, “Getting out of here is 100%.”
Analyst Altcoin Sherpa Despite Bounce Predictability Expect SOL will fall to $140, a level not seen in almost a month.
Will network upgrades help SOL?
In the past 24 hours, the price of Solana has risen 6%, recovering from the decline to the $162 range. Despite a 7.8% drop last week, prices have surged 13.5% over the past 30 days.
Likewise, daily trading volume has increased by 28% in the last 24 hours, suggesting a surge in market activity for the token.
Nonetheless, investors remain concerned about the network as problems continue. proposal Token prices will not increase until “the technology is sorted out.”
Solana is widely known for its fast transactions and low fees. However, the current on-chain failure rate presents challenges for both users and developers.
Austin Federa, head of strategy at the Solana Foundation, responded to criticism and concerns and provided insight into the matter.
Developers at Anza, Firedancer, Jito, and other key contributors are working diligently (without much sleep) to strengthen Solana’s networking stack to meet the unprecedented demands facing networks today.
There have been many threads about what exactly causes it…
— Austin Federa | 🇺🇸 (@Austin_Federa) April 10, 2024
According to Federa, developers of Solana Chain’s core contributors are “working hard to strengthen Solana’s networking stack to meet the unprecedented demands facing the network today.”
“Implementations of today’s software systems are not robust enough to handle the amount of traffic that occurs,” the developer explained. As a result, core protocol developers are working to test and implement improvements, leaving “fee increases as a last resort.”
As of this writing, SOL is trading at $174.57.
Solana performance in the weekly chart. Source: SOLUSDT on Tradingview Featured image from Unsplash.com, chart from TradingView.com
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Source: NewsBTC.com