Solana Soft After Wednesday’s Outage & Drop

  • SOLUSD
    (${instrument.percentChange}%)

Solana Outage

Solana blockchain experienced an outage on Wednesday, since block production on Solana Mainnet Beta was halted, as per the Solana Status Twitter page. [1]

As per the same account, validator operators successfully completed a cluster restart of Mainnet Beta, after more than four hours of outage, which was caused by the network's failure to reach consensus. [2]

SOL/USD Movement

The popular altcoin erased around half of its value in May and the cryptocurrency rout we saw - a far worse drop compared to some other cryptos. As a reference, FXCM's CryptoMajor Basket shed less than 30% in the same month.

This led SOL/USD to multi-month lows and the new month has not stated well, since aforementioned outage sparked a more than 11% plunge.

The cryprocurrency extended its losses today and this creates risk for fresh 2022 lows towards 32.40, although bears may need fresh impetus for tackling this level, while 18.20 seems distant for now.

Despite the losses, SOL/USD tries to catch a breath during the European hours and the Relative Strength Index (RSI) tries to move away from oversold levels. This may give the altcoin a chance to rebound towards the EMA100 (at mid-44.00s), but it does not really inspire confidence for much more at this stage.

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Successful move above the EMA100 however, would pause short-term downward bias and could allow it to look towards and beyond 48.47.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 02 Jun 2022 https://twitter.com/SolanaStatus/status/1532043450107015168

2

Retrieved 04 Oct 2022 https://twitter.com/SolanaStatus/status/1532106367279955969

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