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Solana: To Buy or Not To Buy, a Detailed Guide For Your Next Trade

Published 10/01/2022, 12:25 PM
Updated 10/01/2022, 12:30 PM
Solana: To Buy or Not To Buy, a Detailed Guide For Your Next Trade
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  • Solana network stopped processing transactions after being hit by an outage.
  • The crypto bear market has pushed Solana’s market capitalization down by nearly 81% in 2022.
  • Solana price has suffered a prolonged downtrend, there is a likelihood of a massive rally in SOL.

Ethereum-killer Solana suffered a massive network outage after a misconfigured node took down the entire SOL network. The pending transactions on the Solana network were in limbo.

The Solana network is back online after suffering a six-hour outage today. The outage was caused by a misconfigured node and it caused the network to stop processing transactions and go offline. This is the fourth major outage on the Ethereum-killer blockchain since January 2022. Solana has suffered several partial outages throughout the year.

In September 2021, Solana suffered an 18-hour outage. The altcoin has lost 81% of its market capitalization since the beginning of 2022.

While Solana offers high transaction speed and cheaper transactions compared to most rival blockchains, Ethereum, Cardano, and Avalanche, the network has suffered outages all year round. This has resulted in criticism from traders, developers, and the crypto community. Solana competes with rival blockchains in most features, however, outages have remained a leading cause of concern among NFT projects, developers, and traders on the SOL blockchain.

The Solana Status site, operated by the Solana Foundation shares accurate updates on the status of the SOL blockchain. Based on the Solana price chart, the first level of short-term bullish momentum is complete and the SOL price has sustained above the 20-day Exponential Moving Average (EMA). Solana’s price is set to approach the 50-day EMA, confirming a massive rally in the Ethereum-killer altcoin.

SOL-USDT Price Chart (Source: TradingView)

The declining trading volume has emerged as a cause of concern among traders. Likewise, a momentum indicator Moving Average Convergence Divergence (MACD) closed to move above the neutral zone. There is a decline in trade volume, and this remains a cause of concern for Solana’s uptrend.

Traders can expect a recovery rally in Solana price despite the declining volume. It remains to be seen whether Solana price trend sustains its bullish momentum.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinEdition. No information in this article should be interpreted as investment advice. CoinEdition encourages all users to do their own research before investing in cryptocurrencies.

The post Solana: To Buy or Not To Buy, a Detailed Guide For Your Next Trade appeared first on Coin Edition.

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