SOL Price Regains $100 Looking Past the Solana Outage Episode, What’s Next?

In the last 36 hours, SOL/BTC surged by 4.5%, signaling a positive shift for Solana post-outage, reassuring traders of a potential rally ahead.
By Bhushan Akolkar
Solana 2024 SOL Price

Highlights

  • Solana outperforms the broader crypto market, surging 4.5% extra over BTC.
  • The Solana network activity takes a minor hit after the recent outage incident.
  • If the SOL price break $110 resistance, it can rally further to $170.

As the broader cryptocurrency market registers a formidable recovery by surging 3.5% in the last 24 hours, Solana registers the most gains shooting past $100. At press time, the SOL price is up 6.58% currently trading at $101.73 with a market cap of $44.4 billion.

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Solana Rebounds Strongly, Outperforms Bitcoin

According to on-chain data provided by Santiment, Solana (SOL) has emerged as one of the standout performers among altcoins this week, showcasing a notable surge in value compared to Bitcoin. The cryptocurrency has surged back above the $102 mark, indicating a resurgence in investor confidence.

Over the past 36 hours, the SOL/BTC pair has experienced a significant increase of 4.5%, marking a positive turn of events for Solana. This surge comes in the aftermath of an outage that had concerned traders earlier in the week. Interestingly, what was initially perceived as a setback for Solana turned out to be a local bottom, with the fear, uncertainty, and doubt (FUD) surrounding the outage serving as a catalyst for the subsequent price rebound.

Courtesy: Santiment

Earlier this week on Tuesday, February 6, the Solana blockchain network suffered a massive outage with 5-hours of downtime. Later, the blockchain network resumed production as developers released an upgrade to v1.17.20 and a restart of the cluster by validator operators.

The downtime occurred because of a malfunction in the BPF loader, also known as the “Berkley Packet Filter,” which is responsible for deploying, upgrading, and executing programs on the Solana network. To resolve the issue, developers have reworked the BPF code lines on the development network.

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On-chain Indicators and SOL Price Prediction

On January 31, the Solana blockchain logged its highest number of active users on the layer-1 network since its inception in 2020, reaching a total of 875,940 users. However, as per the data from Token Terminal, the network activity has been on a bit of a decline in the first week of February. Besides, the network activity seems to have taken a further hit amid the outage episode.

Courtesy: Token Terminal

On the upside, the major resistance level for Solana stands at $110. If the SOL price manages to breach that, it could stage another 50% rally all the way to $170.

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Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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