$2 billion flows into Solana in a day; Why SOL is pumping

9 Feb 2024

With the majority of assets in the cryptocurrency sector back into bullish mode, headed by the industry’s representative, Bitcoin (BTC), which has already surpassed the $46,000 price mark, Solana (SOL) is no exception, having added $2 billion to its market capitalization in a single day.
As it happens, Solana’s market cap raced from $44.23 billion to $46.19 billion in mere 24 hours, which means it has added as much as $1.96 billion and grown by 4.43% during this period, as per the latest information obtained from crypto analytics platform CoinMarketCap on February 9.
Solana 24-hour market cap chart. Source: CoinMarketCap

Solana price analysis

In the meantime, Solana is back above the critical psychological level at $100 and is presently trading at the price of $105.91, recording a 4.4% gain in the last 24 hours, as well as adding 5.18% across the previous seven days, and advancing 7.9% on its monthly chart.
Solana 7-day price chart. Source: Finbold
Notably, the significantly bullish activity of the currently fifth-largest asset in the crypto industry by market cap is taking place after the first network outage in a year, which occurred earlier this week, and Solana has not only managed to recover its price but has made an even stronger advance.
According to analysts at crypto and blockchain analytics firm Santiment, “Solana is one of the few altcoins outperforming Bitcoin this week,” with Monday’s outage “ended up being a local bottom, with the FUD fueling this price rebound,” as they observed in an X post on February 8.
Earlier, the pseudonymous stock and crypto investor Jelle pointed out the similarities between the movements of Solana and Ethereum (ETH) in 2020, “just before it went from $350 to $3,500 in a matter of months,” wondering if the same scenario would play out with SOL as well, in which case it would cross $1,000.
Solana vs. Ethereum price action analysis. Source: Jelle
All things considered, Solana is acting in line with the general sentiment in the crypto market and contributing to the overall optimism with its own exceptionally bullish movements. However, things in this sector can change rapidly, so doing one’s own research is essential before investing.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

 Solana Price Displays Bullish Reversal! Is A Breakout Rally Imminent For SOL Price?

The crypto industry continues to trade positively by successfully recording the second consecutive green day of the month. Further, the Solana price has added approximately 3% within the past 24 hours, indicating a strong uptrend for the coin.

The SOL coin price started the year positively by adding 17% to its portfolio within the first two days. Following this, the market experienced a trend reversal, resulting in the Solana price erasing all its gains from the pump, after which the price traded sideways for a while.
TradingView: SOL/USDT
As the market volatility grew, the bears overpowered the bulls and recorded a loss of 21.25% in just three days. However, the bulls quickly regained momentum, and the Solana price jumped over 17% in valuation. Following this, the Solana coin traded in a consolidated range between $90 and $108.18 for two weeks.
The bulls struggled to hold the price above the support level, resulting in a price breakdown. The SOL coin price recorded a correction of over 14.5% within the next two days. After testing its crucial support level of $80.19, the bulls regained momentum, and the altcoin constantly traded in a rising pattern and added approximately 30% by the month-end.
Since then, the price has been constantly trading in a consolidated range between $90 and $108.18 and is on the path to testing its resistance level, the outcome of which is unpredictable.
Also Read: Chainlink Consolidates Where Solana Makes a Bullish Attempt: The Next Move May Shake Up the Altcoin Markets

Will Solana Go Up Again?

The MACD records a constant green histogram, indicating a bullish influence in the crypto market. Moreover, the averages show a steady rise, suggesting the SOL price will continue gaining value in the coming time.
If the market continues to gain momentum, the bulls will run to test its resistance level of $108.18 over the weekend. Further, if the bulls continue to hold power over the bears, the SOL price will continue to rise and prepare to test its upper resistance level of $117 in the upcoming weeks.
Conversely, if a trend reversal occurs, the Solana token will lose momentum and fall to test its support level of $100 by the week ahead. Moreover, if the bears continue to dominate the market, it will lose its $100 mark and prepare to test its lower support level of $ 90 in the coming days.
Altcoins Price Analysis

Solana Faces First Outage of the Year; Engineers Deploy Fix as SOL Dips 3%

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The Solana layer one (L1) blockchain is currently experiencing a service disruption, with the Solana Status website revealing that engineers are actively probing the cause. Validators on mainnet have received instructions to implement an upgrade to version 1.17.20 and to initiate a system reboot.
** Editor’s note: Solana Status notes that block production resumed at 14:57 UTC. A final paragraph has been added to reflect the update.

Solana Network Experiences Disruption, Prompting Urgent Upgrade and Reboot

Presently grappling with its first outage of the year, Solana has otherwise maintained a 99.8% operational status over the preceding 90 days, notwithstanding the interruption. This setback is part of a series of disruptions that Solana has encountered in 2020, 2021, and 2022, during which times the blockchain was offline for extended periods, unable to generate blocks.
An initial status update, tagged “mb-020624” on the Solana Status web portal, indicates that the development team is delving into the problem. Additionally, updates regarding the situation have been communicated to the public via the Solana Status X account.

“Engineers from across the ecosystem are readying a new validator software release, which includes a patch to address an issue which caused the cluster to halt,” the Solana Status X account posted. “Validator operators should prepare for an upgrade and restart of the network.” The social media account associated with Solana added:

Mainnet validator operators: release version v1.17.20 is ready — please upgrade and restart.

The operator of the X account further left a Github page with instructions on how to restart. Solana’s native crypto asset SOL dipped more than 3% on the news trading for just over $94 per unit. SOL is the fifth largest crypto asset by market capitalization valued at $41.12 billion on Feb. 6, 2024. Following the release of version 1.17.20, Solana Status noted that block production had resumed.
“Block production on Solana mainnet beta resumed at 14:57 UTC, following a successful upgrade to v1.17.20 and a restart of the cluster by validator operators,” the update states. “Engineers will continue to monitor performance as network operations are restored. The outage began at approximately 09:53 UTC, lasting 5 hours. Core contributors are working on a root cause report, which will be made available once complete,” the website update adds.
What do you think about the Solana network outage? Share your thoughts and opinions about this subject in the comments section below.

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