- Solana’s latest outage increased negative sentiment.
- SOL dropped to $93.4, but it recovered soon and went above $95.
Solana [SOL], which has remained infamous for its outages, held its ground well over the past few months, as no such incidents were recorded.
However, the streak ended on the 6th of February, as the blockchain’s mainnet went down for around five hours, which also had a slight impact on SOL’s price.
Engineers from across the ecosystem are investigating an outage on mainnet-beta. This thread will be updated as more information becomes available https://t.co/rfeioQ6BG9
— Solana Status (@SolanaStatus) February 6, 2024
Solana went down for hours again
Several Solana validators also took it to X (formerly Twitter) to flag this incident. Nonetheless, engineers identified the problem and came up with a solution within a few hours.
They worked on a new network release named v1.17.20, which included a patch to address an issue that caused the cluster to halt.
Though the outage was for a brief period, it did have an impact on sentiment around Solana.
AMBCrypto’s look at Santiment’s data revealed that SOL’s Social Dominance spiked during the outage as people started to talk about the issue online.
Because of the downtime, negative sentiment around the blockchain also spiked during this time.
Source: Santiment
SOL was quick to recover
Apart from market sentiment, the outage also hurt SOL’s price action. Soon after the news broke, SOL’s price started to decline, reaching $93.4.
However, the token was quick to recover and climbed above the $95 mark on the same day.
According to CoinMarketCap, SOL was up by 0.6% in the last 24 hours. At the time of writing, SOL was trading at $95.86 with a market capitalization of over $41.8 billion, making it the fifth-largest crypto.
Though the token’s price recovered quickly, investors should not expect a major uptrend in the short term, as a few market indicators looked bearish.
Is your portfolio green? Check out the SOL Profit Calculator
Notably, Solana’s Relative Strength Index (RSI) and Money Flow Index (MFI) took sideways paths, suggesting a few slow-moving days.
Additionally, the MACD displayed the possibility of a bearish crossover, which indicated that there was a possibility of a price decline.
Source: TradingView
