SOL Breaks Out as Solana Gives Report on Recent Outage

The Chinese New Year which was marked on February 9, came with good tiding for crypto prices and Solana (SOL) was not exempted. SOL’s price at press time was $110 after its previous attempts to hit the region were rejected.

The increase meant that the token had increased by 10.12% in the last 24 hours, CoinMarketCap data showed. Interestingly, this recovery came on the same day the Solana development team gave its report on what caused the 5-hour outage during the week.

Solana Publishes Outage Report

On Tuesday, February 6, Solana experienced a blackout that restricted users from making successful transactions on the blockchain. Coin Edition’s report also showed that the price of SOL plunged during the period.

In the recent revelation, Solana noted that the LoadedPrograms hit the infinite loop during replay on the network. This caused validators to stall on one block, thereby, making it difficult to process other transactions.

For context, an infinite loop is a sequence of instructions that continuously execute programs without termination. “Since at the time of the outage, more than 95% of cluster stake was running 1.17, nearly all validators were stalled on this block”, Solana explained.

SOL to Keep Running Northward

On the 4-hour chart, increased buying pressure saw SOL break past the $101.76 resistance. If SOL keeps up with the buying momentum, the token might extend its gains to $120 in the short term.

But that would only be the case if the bulls can defend the downward support at $95.11. The position of the Relative Strength Index (RSI) at 69.20 suggested increased buying momentum. It also implied that there is more room for growth.

However, if the RSI crosses 70.00, SOL might be considered overbought. In this instance, the price could pull back to $97.74. But if bulls continue to load up buy orders, SOL’s price might recover northward.

Furthermore, the Moving Average Convergence Divergence (MACD) positioned in the positive region. Also, the 12- EMA (blue) was above the 26 EMA (orange), reinforcing the clear upside potential SOL had.

If bulls continue to dictate the token’s direction, SOL might hit $126.40— which was last seen on Christmas day. But if traders decide to book profits in the meantime, the price might drop below $100.

Market Players Are Bullish

Meanwhile, recent predictions from different analysts suggested a bullish outlook for the L1 token. For instance, CryptoJelleNL, an investor, posted on X, that SOL might repeat what Ethereum (ETH) did in 2022 when the price moved from $350 to $3500 within a few months.

Should SOL do the same, then the price could hit $1000 before this year ends. Matthew Dixon, CEO of crypto rating platform, Evia, was more conservative and gave his prediction for the short term.

According to Dixon, the recent technical glitch might not stop SOL’s rally, and he expects the price to move much higher going forward.

Based on the chart he shared, SOL might surpass $132 in the short term. But after a while, the token could face correction which takes it to $92 before another upside.