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Solana Crawls: Network Update Fails To Fix Traffic Jam, Price Feels The Pinch

Solana, the self-proclaimed high-speed blockchain darling, finds itself facing an uphill battle. A confluence of a broader crypto market downturn and persistent network congestion threatens to stall its momentum and cast doubt on its long-term viability.

Solana Slides With The Market

The recent crypto market correction hasn’t spared Solana. The token, which enjoyed a stellar run for months, has mirrored the overall slump. On Tuesday, April 30th, Solana dipped to $127, marking a daily decline of 4% and a weekly drop exceeding 10%.

Lingering Congestion Woes Plague Solana

While the market downturn is a concern, a more pressing issue for Solana seems to be its network congestion woes. Recent updates aimed at fixing a bug related to the QUIC protocol haven’t delivered the promised network decongestion.

As of April 29th, the transaction failure rate remained stubbornly high at over 65%. This persistent network sluggishness directly contradicts Solana’s core value proposition of high transaction speed and efficiency.

The congestion issues are particularly worrisome for sectors like Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs), which rely heavily on fast and reliable transactions. Solana has carved a niche for itself in these areas, and prolonged congestion could tarnish its reputation and deter future projects and users.

Investor Optimism On Hold, But Long-Term Signals Remain

Interestingly, investor reaction to the congestion hasn’t been overwhelmingly negative – yet. Solana’s price movement has largely mirrored the broader market trend, suggesting investors might be taking a wait-and-see approach.

Perhaps there’s a flicker of hope that Solana can overcome these challenges. While the short-term technical indicators paint a bleak picture, some long-term signals, like the 200-day moving averages, still offer a glimmer of optimism.

Solana At A Crossroads

The coming weeks and months will be crucial for Solana. Can it address the network congestion issues definitively? Will it be able to regain the trust of developers and investors shaken by the recent performance?

Solana’s future hinges on its ability to navigate these rough waters. If it can overcome these hurdles and emerge with a more robust and scalable network, it might just weather the storm and reclaim its position as a leader in the blockchain space.

However, if the congestion problems persist, Solana could find itself falling behind competitors who can offer a smoother and more reliable user experience.

Featured image from Pexels, chart from TradingView

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SOL Price Topside Bias Vulnerable If Solana Continues To Struggle Below $170

Solana attempted a recovery wave above the $140 level. SOL price is now struggling to clear the $160 and $170 resistance levels.

  • SOL price recovered higher and tested the $160 resistance against the US Dollar.
  • The price is now trading below $160 and the 100 simple moving average (4 hours).
  • There is a key bullish trend line forming with support at $146 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
  • The pair could start another decline if it stays below $160 and $170 for a long time.

Solana Price Faces Resistance

Solana price started a major decline below the $170 and $160 support levels. SOL tested the $115 zone and recently started an upside correction, like Bitcoin and Ethereum.

There was a decent increase above the $130 and $140 levels. The price climbed above the 23.6% Fib retracement level of the downward wave from the $205 swing high to the $115 low. It even spiked above the $155 zone and the 100 simple moving average (4 hours).

However, the bears are active near the $160 zone and the 50% Fib retracement level of the downward wave from the $205 swing high to the $115 low. The price struggled and corrected gains.

SOL Price

Source: SOLUSD on TradingView.com

Solana is now trading below $160 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at $146 on the 4-hour chart of the SOL/USD pair. Immediate resistance is near the $155 level. The next major resistance is near the $160 level. A successful close above the $160 resistance could set the pace for another major increase. The next key resistance is near $170. Any more gains might send the price toward the $188 level.

Another Decline in SOL?

If SOL fails to rally above the $160 resistance, it could start another decline. Initial support on the downside is near the $145 level and the trend line.

The first major support is near the $132 level, below which the price could test $120. If there is a close below the $120 support, the price could decline toward the $100 support in the near term.

Technical Indicators

4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $146, and $132.

Major Resistance Levels – $155, $160, and $170.

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Solana Market Cap Skyrockets $11 Billion As Price Jumps 17% – Details

Solana, like many Proof-of-Stake (PoS) cryptocurrencies, relies on a decentralized network of validators who secure the network by staking their SOL coins. In exchange for staking, validators earn rewards.

However, as Solana’s price began its recent ascent, a noticeable decline in staked SOL was observed. This suggests that some validators are choosing to unstake their coins, potentially to capitalize on the price surge and book some early profits.

Solana Market Cap And Price Soar

Meanwhile, on Tuesday, Solana enjoyed a stellar day, surging 17% and adding over $11 billion to its market capitalization, which now stands at over $70 billion. This impressive performance saw Solana outperform industry giants like Bitcoin (BTC) and Ethereum (ETH), which remained entangled in their own price gyrations. With its market capitalization now totaling an impressive $80.7 billion, Solana’s surge has caught the attention of the crypto world.

This unstaking activity has drawn the attention of analysts, with the unstaked amount reaching a significant 5 million SOL over the past week. With Solana currently trading around $157 per coin, this translates to roughly $780 million worth of tokens re-entering the market. The influx of such a large volume in a short period could lead to a temporary oversupply situation on exchanges.

Pullback Or Power Through?

The potential impact of unstaked SOL on the price is a matter of debate. Without a corresponding surge in demand to absorb this additional supply, there’s a risk of an initial price correction in the coming days. This could see Solana retreat from its current perch and settle around the $150 mark before potentially resuming its upward trajectory towards $200.

The $200 Target

The coming days will be crucial for Solana. The bulls need to maintain strong buying pressure to absorb the unstaked coins and push the price above the $160 resistance zone. If successful, this could propel Solana towards its $200 target. However, a failure to do so, coupled with a large-scale sell-off from unstaked SOL, could trigger a correction down to $150.

Solana Breakpoint 2024

In another development, Solana Breakpoint 2024 is set to take place in Singapore, from September 20 to September 21. This event will provide attendees with full access to the heart of the Solana community, including insightful talks and exclusive events.

Special subsidized rates are available for developers, creators, artists, and students, ensuring that a diverse range of individuals can participate in this transformative event. The Solana Campus, located just a short 15-minute journey from downtown Amsterdam, offers a variety of stages for insightful talks, networking areas to build connections, and complimentary transportation for attendees’ convenience.

Solana Breakpoint is an important event for the Solana community, providing a platform for developers, validators, and other ecosystem participants to discuss the latest developments, share insights, and showcase their achievements. The annual conference highlights the network’s potential and its role in the broader blockchain space, with a focus on performance, reliability, and innovation.

Featured image from Pexels, chart from TradingView

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Solana Meme Coin Massacre: 12 Projects Gone In 30 Days, $27 Million Vanished

The Wild West of cryptocurrency just got a little wilder. Solana, the blockchain known for its lightning-fast transactions, recently became a breeding ground for a peculiar phenomenon: the meme coin frenzy.

While these dog-themed, cat-inspired, or just plain nonsensical tokens promised moon landings, many investors landed face-first in a crater of lost cash.

Solana Stampede: A Frenzy Of Frivolous Finance

Fueled by social media hype and the fear of missing out (FOMO), a stampede of investors poured money into meme coin presales. A project with a name like “I Like This Coin” (LIKE) sprouted like weeds, promising outlandish returns.

The “I Like This Coin” story, however, turned out to be a classic case of “buyer beware.” Despite an initial market cap of a staggering $577 million, the token’s value plummeted by a disastrous 90% within a mere eight hours of launch.

The party didn’t stop there. Blockchain investigator ZachXBT uncovered a particularly galling trend: a dozen meme coin projects vanished into thin air after their presales, taking a combined $26.7 million from investors with them.

Solana Slowdown: When Meme Mania Clogs The Network

The meme coin craze wasn’t without collateral damage. The massive influx of transactions clogged the Solana network, leading to transaction failures and frustrating delays. This highlighted a fundamental issue with meme coins: they often lack real-world applications and contribute little to the underlying blockchain’s development.

Solana’s founder, Anatoly Yakovenko, wasn’t shy about expressing his skepticism. He questioned the very concept of meme coin presales, suggesting they were better suited for projects with strong tech foundations. Yakovenko’s comments resonated with many who saw the meme coin frenzy as a speculative bubble fueled by empty promises and social media hype.

Meme Coin Meltdown: A Cautionary Tale For Crypto Curious Investors

The rise and fall of Solana’s meme coins serves as a stark reminder of the inherent risks associated with investing in unregulated, highly speculative assets. While the allure of quick riches might be tempting, the potential for scams and rug pulls (where developers abandon a project after raising funds) is significant.

The fallout from the meme coin frenzy could have lasting repercussions. Regulatory bodies might take a closer look at this corner of the crypto world, potentially leading to stricter measures to protect investors.

For those interested in exploring the exciting world of cryptocurrency, the lesson is clear: conduct thorough research, prioritize projects with real-world use cases, and always remember what the sages mean when they say if it sounds too good to be true…

Featured image from Pexels, chart from TradingView

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Crypto Guru Reveals Top Altcoin Picks And DeFi Risks: What You Need To Know

Renowned crypto analyst Lark Davis recently shared insights into the world of altcoin and decentralized finance (DeFi), offering high-risk, high-reward options and established projects.

During a live stream, Davis discussed his current portfolio holdings, while emphasizing the volatility inherent in these markets.

High-Risk Ventures Altcoin And Established DeFi Projects

During his discussion, Davis advised against investing in Bitcoin SV (BSV), expressing doubts about Craig Wright’s claim to be Satoshi Nakamoto. He emphasized the importance of doing thorough research before investing in cryptocurrencies.

Additionally, he mentioned Bitcoin Cash (BCH) as a potential candidate for the next ETF approval in the US due to its slight variations from Bitcoin.

Regarding altcoins and DeFi, Davis highlighted different projects in his portfolio, including “Puff, Benji, and Foxy,” which he categorized as “high-risk, high-reward ventures.” Davis also mentioned DeFi projects like “Jup and Arrow,” which are known for their governance features and staking rewards.

Furthermore, Davis discussed projects with considerable potential for growth, such as Solana, Trader Joe, and Mantle. However, he emphasized these investments’ volatile nature and recommended that viewers approach them cautiously.

In addition to Davis’s insights, Solana has recently become the fourth-largest cryptocurrency by market capitalization, surpassing XRP and Dogecoin. With a market cap of $68.7 billion and a price of $154.66 at the time of writing, Solana’s rise reflects growing interest in the project.

SOL price chart on TradingView amid Altcoin news

Analysts’ Perspectives On Altcoins

Meanwhile, analysts offer contrasting views on the future of altcoins. Altcoin Sherpa suggests that these alternative tokens may stagnate for 1-4 months, needing time to consolidate after a significant run.

However, Crypto Jelle presents an opposite outlook, suggesting that altcoins could rally massively in the coming months.

Crypto Jelle points to historical patterns, noting that altcoins typically consolidate after breaking out from a resistance zone before entering a new bull run. If history repeats itself, altcoins could demonstrate significant growth potential shortly.

 

Featured image from Unspalsh, Chart from TradingView

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Are Altcoins Cooling Off? Analyst Weighs In On This Cycle’s Market

Many investors expressed worries about the crypto market corrections during this cycle. Bitcoin’s price drop has dragged altcoins with them, and, as a result, a more pessimistic sentiment has started to brew among some sectors of the crypto community.

Analysts and traders have reassured investors that the market fluctuations are a normal part of the journey. Some urge the community to look at the bigger picture, as altcoins remain above levels not seen in years.

Renowned crypto analyst Altcoin Sherpa weighed in on the matter, exploring some of the reasons and differences that make this bull cycle different from the 2020s.

Time For An Altcoins Cool-Off?

In an X post, Altcoin Sherpa asserted that there’s a high possibility “that altcoins are done for the next 1-4 months.” The analyst considers that, right now, most of the market needs “time to chill out and consolidate after such a big run.”

Despite recently falling below the $1 trillion market capitalization, altcoins have performed remarkably in the last few months. In 2024, cryptocurrencies’ market cap, excluding Bitcoin’s, has increased by 22.79%, according to TradingView data.

Altcoins market cap has also considerably surged in longer timeframes, with a 91.31% and 52.46% jump in the last six months and the past year. This “big run,” as Sherpa called it, sits the cryptocurrency market at levels like those seen in 2022.

However, what worries the crypto analyst is, despite the overall performance, “many alts didn’t even run that hard over the last few months.” He illustrated his point with Chainlink’s native token, LINK.

Despite the +500 days of accumulation, LINK investors only got 3-4x gains depending on when they go in. Now, the token’s price is “strongly pulling back.” Expectations for altcoins during this cycle seemingly play a significant role in the current sentiment.

As one X user pointed out, LINK was anticipated to be one of the biggest winners of this cycle, Sherpa replied that he “expected more lol.” The user playfully commented, “No dino coins and new and shiny coins are the better bet.”

How Did The Market Change?

The previous comment highlights what appears to be a significant difference between this bull run and the 2020s. Choosing your bag has become more difficult since the market has expanded significantly.

Sherpa considers that “now more than ever, it is super important to choose the altcoins that are going to run hard.” In 2020, the massive altseason made “everything go up consecutively.”

This time, the liquidity is more fragmented, and “only a few sectors are pumping.” The AI and memes sectors have been the hottest topic in 2024, and layer-1 (L1) tokens, like SEI, have also performed well. “Everything else? Not great,” remarked Sherpa.

The massive number of tokens, both newly launched and old ones, are finding it more difficult to “capture mindshare/attention.”

Regarding retail investors, the analyst is not surprised that the default choice is memecoins instead of “trying to learn about some DeFi veRewards type of stuff. Or Oracle or L1s or modular or anything else.”

The analyst suggested investors “move to real value” like ETH and SOL. He also considers that big token launches, with significant money behind them, “have some real value.” These coins, as stated in the post, have the potential to “do very well” once Bitcoin stabilizes.

Sherpa’s market analysis closes with a “pretty bearish” outlook for the following months. The growing difficulty in keeping user attention and “for people to become strong users/community members” for many projects has made the market a different playground.

Ultimately, the analyst pointed out that “portfolio rebalances are necessary” and said he still believes this run is not over.

Altcoins, crypto, TOTAL

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SOL Price Dump and Pump, Can Solana Overcome Selling Pressure?

Solana tumbled and declined toward $110. SOL price is now correcting losses above $140 and facing hurdles near the $160 resistance zone.

  • SOL price gained bearish momentum and declined below $150 against the US Dollar.
  • The price is now trading below $160 and the 100 simple moving average (4 hours).
  • There is a key bearish trend line forming with resistance at $160 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
  • The pair could continue to recover if it clears the $150 and $160 resistance levels.

Solana Price Starts Recovery

Solana price started a major decline below the $180 and $160 support levels. SOL declined over 20% and even tumbled below the $150 level. Finally, the bulls appeared near $110.

A low was formed at $115.04 and the price is now attempting a recovery wave like Bitcoin and Ethereum. There was a decent increase above the $125 and $132 levels. The price cleared the 23.6% Fib retracement level of the downward move from the $204 swing high to the $115 low.

Solana is now trading below $150 and the 100 simple moving average (4 hours). Immediate resistance is near the $150 level. The next major resistance is near the $160 level.

SOL Price

Source: SOLUSD on TradingView.com

There is also a key bearish trend line forming with resistance at $160 on the 4-hour chart of the SOL/USD pair. The trend line is near the 61.8% Fib retracement level of the downward move from the $204 swing high to the $115 low. A successful close above the $160 resistance could set the pace for another major increase. The next key resistance is near $182. Any more gains might send the price toward the $200 level.

Are Dips Supported in SOL?

If SOL fails to rally above the $160 resistance, it could start another decline. Initial support on the downside is near the $140 level.

The first major support is near the $132 level, below which the price could test $125. If there is a close below the $125 support, the price could decline toward the $115 support in the near term.

Technical Indicators

4-Hours MACD – The MACD for SOL/USD is gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $140, and $132.

Major Resistance Levels – $150, $160, and $182.

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Market Expert Reveals Why Solana Price Is Poised To Go Higher

A cryptocurrency analyst, who accurately foresaw the market’s bottom in 2018, is now focusing on Solana, foreseeing a price bottom for the cryptocurrency and identifying its next target after reaching it. 

Solana To Rise Above $200 After Hitting This Bottom

In a Wednesday X (formerly Twitter) post, a crypto analyst identified as ‘Bluntz’ has highlighted a potential price bottom for Solana. Following up on the previous forecast on April 4, where he predicted that Solana would hit a bottom at or below $160 before pushing back up, Bluntz revealed in his new post that the next price bottom would be $162. 

The crypto analyst anticipates that Solana’s price will hit a bottom at $162 before it begins to move higher, suggesting a possible bullish rebound for the cryptocurrency. Sharing several price charts illustrating Solana’s price movements between March and April 2024, Bluntz uses the Elliot wave theory as a technical pattern to guide his predictions.

The Elliott wave theory is a unique form of technical analysis which predicts price movements by observing and identifying recurrent long-term price patterns related to persistent changes in investor sentiment and psychology.  

In his earlier post, Bluntz shared a price chart which indicated that Solana’s next leg up after hitting the predicted price bottom would be $224. He estimated the timeline for this significant surge, predicting that the cryptocurrency could jump to $224 before April 22. 

Price Update On Solana (SOL)

Lately, the price of Solana has been on a major downward trend, recording double-digit losses for the past few weeks. At the time of writing the cryptocurrency is trading at a price of $151.15, marking a 12.32% decrease in the last 24 hours and a 13.93% drop in the past week, according to CoinMarketCap. 

This continuous decline has been attributed to the congestion issues Solana’s network currently faces. Earlier in April, Solana had fallen victim to a network outage, resulting in about 75% of transactions on the network failing. This caused a major disruption in the blockchain’s operations, raising concerns among investors and the broader crypto community. 

Following the blackout, the price of Solana plummeted significantly and has continued on a downward trend. Despite scheduling April 15 for a network resolution, the cryptocurrency’s value has not shown any positive response. 

It’s also important to note that Solana’s current price has dropped way below the previously stipulated bottom of $162 predicted by Bluntz. The possibility of a bullish rebound for the cryptocurrency remains uncertain, as more doubts have been raised concerning the network’s ability to handle significant transaction volumes. 

Featured image from Pexels, chart from TradingView

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Solana (SOL) Price Rally Over? What The Fundamentals Say

Solana (SOL) has recently become a focal point of discussion among investors and analysts. After surging from below $22 to a high of $210 within six months, and currently trading at around $174—a nearly 700% increase—questions arise about the sustainability of its price rally.

Despite the impressive surge, SOL remains 50% shy of its November 2021 all-time high of $260. The recent consolidation pattern over the past four weeks suggests a cooling off period. As the market looks forward, understanding the underlying fundamentals becomes crucial.

Jamie Coutts, Chief Crypto Analyst (CMT) at Real Vision, notes in an analysis, “While Solana’s outperformance has waned in the past month, it is still the best-performing network in the past 12–18 months by a country mile. […] Solana’s price adjustment seems abrupt but is aligned with fundamental indicators that suggest a stabilizing rather than diminishing value proposition,” Coutts explains.

Solana Fundamentals Remain Strong

Solana’s Daily Active Users (DAUs) have risen dramatically, up more than 400% over the last nine months. This growth places Solana in a rarefied group of networks boasting over 1 million DAUs. Despite not reaching its 2021 peak DAUs, which may have been inflated by synthetic activities linked to the FTX exchange, the nature of engagement on Solana has evolved.

“The ecosystem is maturing; the engagement we see today is fundamentally different—more diverse and significantly more integrated with real-world applications,” Coutts remarked. He highlighted the burgeoning sectors contributing to this growth, including artificial intelligence, decentralized finance, consumer applications, and the burgeoning memecoin and NFT spaces.

With a significant retracement from its 2021 peak price, Solana’s market capitalization has still managed to hit new highs this cycle, suggesting a broadening base of investment and valuation recalibration. “The Network Value to User (NVU) ratio indicates that while the asset appreciation is notable, it’s the user growth that provides a compelling story for Solana,” Coutts notes.

At present, Solana’s NVU ratio fluctuates between 50-100, reflective of a balanced growth-to-value dynamic when compared with other networks where speculative value often outstrips user growth.

One of the standout metrics for Solana this cycle has been its fee revenue, which has seen a sixfold increase in a nine-month period. Daily fees now average $1.8 million, a fortyfold increase. This surge is largely attributable to the network’s increasing utilization across various applications.

“Fee income not reaching its peak is a misnomer; what’s crucial is that the financial underpinnings of the network—highlighted by fee income—are stronger than ever,” Coutts emphasized. He also compared Solana’s fee income, which reached about 20% of Ethereum’s in March, demonstrating its growing financial stature within the ecosystem.

Solana Vs. Ethereum And Future Outlook

While Solana still lags behind Ethereum in terms of total dApps, its economic indicators are robust. With 134 dApps, compared to Ethereum’s 2,702, Solana’s dApp cash flow intensity is second only to Ethereum, indicating a high monetization capability per application. “Solana’s smaller, more potent suite of applications is driving economic efficiency that rivals even the largest networks,” states Coutts.

Despite the speculative components associated with memecoins and airdrops driving part of the transaction volume, Solana’s adjusted fee growth metric isolates and highlights genuine economic activity. With a staggering real fee growth rate of 3,259.7%, Solana leads all networks in this metric.

“While some underlying activities might be transitory, the intense and growing usage of Solana’s blockchain is undeniable evidence of its utility and viability,” Coutts concludes.

As Solana continues to develop and expand its ecosystem, the fundamental analysis underscores a network that not only maintains robust health and economic vigor but is also poised for future growth. This paints a picture of a blockchain platform that, despite market volatilities, remains a leading player in the crypto landscape, backed by strong fundamentals and promising growth metrics.

At press time, SOL traded at $173.47.

Solana price

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Trading Guru Uncovers This Notable Pattern On Solana: What’s Next For SOL Investors?

Trader and market analyst Peter Brandt has provided valuable perspectives on the recent price movement of Solana (SOL), suggesting the completion of a notable chart pattern.

In particular, Brandt has noted a descending triangle pattern forming on Solana’s 4-hour price chart.

Identified Chart Pattern On SOL And Its Implications

The descending triangle pattern identified by lower highs and a horizontal support line is often interpreted in technical analysis as a signal of a potential downtrend continuation. Brandt’s recent post highlighted the completion of this pattern, drawing attention to a crucial development for SOL traders.

Brandt’s analysis extends beyond the mere identification of the pattern. He underscores the significance of pattern validation over its completion.

According to Brandt, a pattern’s failure to fulfill its expected role carries more weight than its mere completion.

With the descending triangle pattern now confirmed for SOL, market participants’ anticipation is palpable as they await potential price movements, whether to the upside or downside.

Solana Network Challenges Amidst Price Fluctuations

While Solana’s price performance has fluctuated over the past week, recent network challenges have added another layer of complexity to the asset’s situation. Despite a 12.7% decline in SOL’s value over the past week, there has been a slight uptick of 4% in the last 24 hours.

Bitcoin (BTC) price chart on TradingView

However, ongoing network congestion has presented obstacles. Solana developers are actively addressing these issues, with efforts underway to resolve network congestion experienced on April 15.

Mert Mumtaz, CEO of Helius Labs, a key contributor to Solana’s maintenance and enhancement, clarified that the current network challenges stem from implementing a specific protocol rather than an inherent design flaw in Solana.

Meanwhile, Solana’s open interest in the futures sector, a metric used in derivatives markets referring to the total number of outstanding contracts, has experienced fluctuations in recent times.

While it saw steady growth from January to April, reaching an all-time high of $2.86 billion on April 1, recent network issues have led to a decline. Coinglass data indicates that Solana’s open interest has fallen to $2.4 billion since April 11, reflecting a 5% decline in just over a week.

Solana open interest on exchange.

Featured image from Unsplash, Chart from TradingView

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Analyst Predicts Solana (SOL) Bounce Amid Network Congestion Problems

Solana (SOL) faced difficulties the past week after the network’s transaction failure rate reached over 75%. Since then, Solana’s core contributors have been working to find the congestion problems.

SOL’s price tumbled 7.8%, and users seemed worried about the network’s state. Despite this, some analysts predict a more optimistic performance for SOL soon.

Is Solana Poised For A Bounce?

According to crypto analyst Bluntz, Solana’s drop has reached its bottom. When the news of network congestion broke, the analyst predicted that SOL’s price would likely fall to $160 before seeing a bounce.

According to his chart, the performance was starting to show an ABC zig-zag pattern. At the time, the token was trading around the $184 price range, which meant that the C wave of $160 had yet to be confirmed.

The analyst remained open to the “possibility of a sideways correction.” Nonetheless, he considered it “would make no sense for sol/usd to sweep down lower below 160.”

On Wednesday, SOL reached a low of $162, sweeping the “A wave low.” To the analyst, this seems to be the bottom for SOL’s price despite being $2 short of his prediction. As a result, Bluntz considers that the token’s price will go “higher from here.”

Crypto, Solana, SOL

Another analyst, Immortal Crypto, pointed out that SOL has shown a “good range” between $210 and $160. According to the analyst, “a deviation from here is a fat long, 100%.”

Despite the possible bounce forecast, analyst Altcoin Sherpa expects SOL to drop to $140, a level it has not seen in almost a month.

Will The Network Upgrade Help SOL?

In the last 24 hours, Solana’s price has risen 6%, recovering from the drop to the $162 range. Despite a 7.8% drop in the past week, the price surged 13.5% in the last 30 days.

Similarly, the daily trading volume increased by 28% in the past 24 hours, suggesting a surge in the token’s market activity.

Nonetheless, investors remain concerned about the network as the problems continue, with some suggesting that the token’s price won’t start pumping until the “tech is sorted out.”

Solana is widely recognized for its fast transactions and low fees. However, the current on-chain failure rate presents problems for both users and developers.

Responding to the critics and concerns, Austin Federa, Head of Strategy at the Solana Foundation, gave insights into the problem.

According to Federa, developers from the core contributors to the Solana chain are “working diligently to shore up Solana’s networking stack to meet the unprecedented demand the network is seeing today.”

The developer explained that “the implementation of a software system is today not robust enough to handle the amount of traffic being thrown at it.” As a result, the core protocol developers are working to test and implement improvements, leaving “increasing fees as a last resort.”

At the time of this writing, SOL is trading at $174.57.

Solana, SOL, SOLUSDT

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Solana Open Interest Drops $370 Million Amid Network Troubles, $200 Still Possible?

Amid the issues that continue to plague the network, the Solana open interest has seen a drop in the last week. This drop coincides with a decline in the cryptocurrency’s price, suggesting that investors may be getting wary of waiting for a fix to come through.

Solana Open Interest Drops By $370 Million

Solana saw its open interest rise steadily since the start of 2024, hitting an all-time high after an all-time high in the process. Between January and April, the Solana open interest went from around $1.22 billion to hit a new all-time high of $2.86 billion on April 1. This translates to an over 100% increase over this three-month period.

However, since hitting this new milestone, the cryptocurrency has encountered issues which have presented in the form of a network halt. Around a week ago, Solana users noticed that the blockchain had stopped processing transactions as usual, leading to a standstill in network activities.

Expectations at the time were that the network would be back up and running in a matter of hours like it usually does. However, this has proven not to be the case, as the network is going on a week of downtime, one of the longest in its history.

Since the network issues began, the SOL open interest has been falling as traders take a more cautionary approach. Coinglass data shows that the open interest is currently sitting at $2.39 billion on April 19, down $370 million from its all-time high, which is a 12.9% decline in around a week.

Solana open interest

Open interest measures the total number of outstanding futures and options contracts, so it means that traders have been closing their positions during this time.

SOL Network Ready To Bounce Back?

Developers are still working on getting the Solana network back on track but it has not been an easy road. Even now, the network continues to battle the blackout, with developers giving a week as an estimated delivery time for the network to be back on track.

CEO of Helius Labs, Bert Mumtaz, revealed in an X (formerly Twitter) post that the current issues were being caused by an implementation bug. This bug has been the reason there have been more failed transactions on the network. Mumtaz also clarified that this bug does not equal a design flaw in the fact that it is relatively easier to fix.

The CEO explained that a patch for this implementation bug would still take a while and that developers are shooting for a fix by April 15, which was a week from the post. However, he added that this date was subject to change in the case where other bugs are discovered in testing.

Following Mumtaz’s post, the Solana community is waiting with bated breaths for the network to return to fill operation. In the meantime, the price of Solana and other coins in the ecosystem has taken a hit. Bears have pushed down the SOL price as low as $175. However, the expectation is that SOL will come back with a vengeance once the network is operational again.

Crypto analyst Ash Crypto has said that they expect that the price of SOL will eventually rise above $400. If this is correct, then the present predicament will be a short-lived roadblock in Solana’s rise.

Solana price chart from Tradingview.com (Open interest)

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Analyst Cites Favorable Market Trends That Could See Bitcoin Touch $300,000 This Cycle

Amid the renewed strength recently displayed by Bitcoin, Michael Van De Poppe, a recognized cryptocurrency analyst and trader has offered an intriguing prediction for BTC, highlighting that the crypto asset is likely to reach the $300,000 threshold in this bull cycle.

Bitcoin Price Targetted At Unprecedented Heights This Cycle

Over the past month, the price of Bitcoin has been consolidating and hasn’t been able to sustain its rise beyond its new peak of $73,000. However, things could soon be changing, as Michael Van De Poppe expects the coin to surge immensely in the short term.

His forecast coincides with anticipation around the upcoming Bitcoin Halving expected to take place in less than 12 days, fueling optimism within the crypto community.

According to the expert, the largest cryptocurrency asset by market cap is still experiencing significant resistance. Nonetheless, if Bitcoin manages to break out of this zone, the coin could witness a progression towards new all-time highs in the coming months.

Bitcoin

Given that BTC achieved the $70,000 price level ahead of the halving event, Poppe believes that it is likely to surge to unprecedented levels, particularly topping out at $300,000 in this bull run.

The post read:

Bitcoin still facing crucial resistance. If this breaks, then we will be seeing a continuation towards new all-time highs. Bitcoin at $70,000 pre-halving. Likely $300,000 this cycle.

Poppe underscored that the price of Bitcoin returned to $70,000 level over the weekend. As a result, he has pointed out bullish indicators that are presently occurring in the crypto landscape.

The analyst also noted that the strength of the cryptocurrency markets has now exceeded our perceptions, and dips in altcoins represent opportunities for good entries. In addition, BTC’s price action demonstrates the potential to reach a new all-time high pre-halving, and the shift in favor of altcoins is on the horizon.

Altcoin Season Set To Kick Off In Weeks

Poppe is super bullish toward an ‘altcoin season’. However, it is important to note that altcoins’ value has frequently coincided with shifts in Bitcoin’s supremacy. But even though Bitcoin’s dominance is still at its peak prior to the halving, Poppe thinks these coins still have a lot of momentum.

He advocates that a new altcoin season will undoubtedly begin in the upcoming weeks. “We always have one, we have seen Meme coins, Solana (SOL) ecosystem, and AI,” he stated.

The expert’s statement suggests that the Solana ecosystem, AI projects, and meme coins in recent months have led the altcoin market. Thus, Michael Van De Poppe has contended that in the impending alt season, crypto initiatives that prioritize the tokenization of Real-World Assets (RWA), the Ethereum (ETH) ecosystem, and the Decentralized Physical Infrastructure Network (DePIN) are likely to be next, paving the way for alts this cycle.

At the time of writing, the altcoin’s overall market excluding Bitcoin and Ethereum was valued at $753.47 billion. This indicates a 2% increase in the market cap in the past 24 hours.

Bitcoin

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100x Or Bust? Solana Investors Bet Big On This Wild Memecoin

The world of cryptocurrency can be a curious place. While established coins like Bitcoin and Ethereum, and even Solana dominate headlines, a new breed of tokens – meme coins – have captured the imagination (and wallets) of a growing number of investors. These coins, often featuring playful mascots and fueled by online hype, can experience explosive growth, but also come with a significant risk of volatility and even scams.

Enter Slothana (SLOTH), the latest Solana-based meme coin making waves in the crypto community. Launched just recently, Slothana has garnered significant attention during its ongoing presale, exceeding its initial fundraising target and raising nearly $10 million at the time of writing.

This early success has fueled speculation of a massive price increase, with some crypto enthusiasts predicting a staggering 100x gain after the presale concludes.

Solana Memecoin Mania

Solana, a high-speed blockchain platform, has become a breeding ground for meme coins. Unlike established blockchains like Ethereum, Solana offers faster transaction speeds and lower fees, making it an attractive platform for launching new meme coins.

This year alone, several Solana meme coins have experienced phenomenal growth. For instance, Smog (SMOG), another meme coin launched on Solana in February, witnessed a nearly 8,000% increase in value for early investors.

This success story has fueled optimism surrounding Slothana, with some speculating a connection between the two projects. A recent “To The Moon” comment from Smog’s official social media account has ignited rumors that the same team may be behind Slothana, further boosting investor confidence.

Can Slothana Avoid The Pitfalls?

Meanwhile, the risk of rug pulls – where developers abandon a project after raising funds through a presale – is a significant concern in the meme coin space.

While Slothana’s presale structure appears transparent, with a “fair launch pricing system” offering equal opportunity to acquire tokens, thorough research into the project’s team and roadmap remains crucial.

Riding The Bitcoin Halving Wave?

An additional factor potentially influencing Slothana’s future is the upcoming Bitcoin halving scheduled for later this month. Historically, Bitcoin halvings, which reduce the number of new Bitcoins entering circulation, have been followed by periods of bullish momentum for the entire cryptocurrency market.

This has often led to a surge in meme coin prices as well, as investors seek out high-risk, high-reward opportunities. If Slothana launches on exchanges before or shortly after the halving, it could benefit from this meme coin frenzy.

Featured image from Pexels, chart from TradingView

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Forget Q1 Slump: Solana Explodes Over 300% Amid DEX Boom

In the first quarter of 2024, Solana became the clear leader thanks to a notable increase in the amount of Decentralized Exchange (DEX) and Decentralized Finance (DeFi).

In addition to its remarkable rise in DEX and DeFi sectors, Solana’s dominance was further solidified by its scalability, low transaction fees, and robust infrastructure.

The massive increase in DEX volume signifies a substantial rise in trading activity within the SOL ecosystem. This trend aligns with the broader adoption of DeFi, with Solana establishing itself as a major player in the space.

This remarkable increase is described in detail in a new report titled “State of Solana Q1 2024” by on-chain analytics company Messari.

The research states that throughout the last three months, The altcoin’s average daily spot DEX volume increased by over 300% to $1.5 billion.

Solana DEX Volume Skyrockets

Solana’s DeFi total value locked, a metric that represents the total value of cryptocurrency locked within DeFi protocols on a blockchain, surged by over 200% to nearly $5 billion, placing it fourth among all networks. This indicates a growing appetite from investors for DeFi projects built on Solana.

Stablecoin Adoption On Solana On The Rise

Another bright spot for Solana in Q1 was the significant growth in its stablecoin market capitalization, which jumped by 50% to nearly $3 billion. This surge was primarily driven by USDC, the leading stablecoin, whose market capitalization on Solana increased by an impressive 110% to slightly above $2 billion.

This growth reflects a rise in trust and adoption of stablecoins on the Solana blockchain, which are cryptocurrencies pegged to the value of traditional assets like the US dollar, offering stability in a volatile market.

Solana Price Volatility A Concern

Despite the positive indicators, the report also acknowledges some potential drawbacks. While the high trading volume is a positive sign, the fact that meme coins are a major contributor raises questions about the long-term sustainability of this growth.

Meme coins are often known for their erratic price movements and lack of underlying utility. Their dominance in Solana’s DEX volume might indicate a speculative bubble rather than genuine growth based on solid projects.

At the time of writing, SOL was trading at $174, reflecting a 12% decrease in the last seven days. This price volatility is a common concern in the cryptocurrency market, and Solana is not immune to it.

Featured image from Pixabay, chart from TradingView

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Solana Primed For Takeoff? Expert Analysis Points To Buying Opportunity

Solana (SOL), a prominent player in blockchain technology, finds itself at a crossroads. While crypto analyst Altcoin Sherpa remains bullish on its long-term potential, recent price drops and a surge in failed transactions raise concerns.

Is Solana Poised For A Major Rally?

Sherpa, known for simplifying complex investment strategies, suggests a buying range of $168-208 for SOL. He emphasizes a long-term approach, advocating patience over short-term price movements.

This aligns with Solana’s reputation for innovation, offering a fast and scalable platform for decentralized applications (dApps). Its growing popularity and strong foundation in blockchain technology further solidify Sherpa’s optimistic outlook.

The analyst urges investors to exercise patience and adopt a long-term perspective while dealing with the erratic cryptocurrency market and advises against overanalyzing the short-term price fluctuations.

By contrast, he advocates refocusing towards a broader point of view, emphasizing that significant profits could result from a less fearful response to price fluctuations within the suggested purchase frame.

In light of the volatility of cryptocurrency investments, this perspective offers some degree of clarity and suggests that Solana’s value is about to see a significant increase.

But, SOL Price Is On The Weak Side

However, Solana’s recent price performance paints a different picture. Over the past 24 hours and the last week, SOL has experienced a slight decline. This dip comes amidst a period of high trading volume, exceeding $4.3 billion in the last day alone. While high volume can indicate strong market interest, it can also be a sign of volatility.

Further dampening investor sentiment is a concerning rise in failed transactions on the Solana network. Data from Dune Analytics reveals a staggering rate – nearly three-quarters of all transactions on the SOL chain have failed since March 2024.

While bots causing spam are attributed to most of these failures, legitimate users interacting with the blockchain for swaps or decentralized exchange (DEX) transactions could also be affected. This network congestion raises questions about Solana’s scalability, a core strength Sherpa highlights.

The Road Ahead For SOL

Solana’s future trajectory hinges on its ability to address these network issues. Developers are actively working on solutions, but it remains to be seen if they can effectively mitigate the problem. Addressing scalability concerns will be crucial to maintaining user confidence and attracting new ones.

The contrasting perspectives on Solana highlight the inherent volatility of the cryptocurrency market. Investors considering SOL should carefully weigh Sherpa’s long-term vision against the recent price decline and network issues.

Looking ahead, several factors will influence Solana’s future. The success of upcoming projects built on its platform and the broader adoption of blockchain technology will play a significant role. Additionally, regulatory developments and the overall performance of the cryptocurrency market could also impact SOL’s price.

Solana remains a force to be reckoned with in the blockchain space. Its innovative approach and strong foundation are undeniable. However, overcoming network congestion is paramount to fulfilling its long-term potential.

Featured image from Pexels, chart from TradingView

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Injective Whales Go On $24.8 Million Buying Spree, Is This The Next Solana?

Injective (INJ) may be on the brink of a potential price surge following a recent wave of accumulation by crypto whales. This would undoubtedly be a much-needed relief for the INJ token, which has dipped significantly in the last seven days. 

Crypto Whales Buy $24.8 Million Worth Of INJ

Data from the market intelligence platform Santiment shows that Whale Addresses recently bought $24.8 million worth of INJ, bringing their total holdings to 10.69 million INJ. This purchase is significant considering the impact that crypto whales have on the market. As such, a purchase of such magnitude could provide a much-needed boost to INJ’s price. 

Injective, like the broader crypto market, has been on a steady decline over the last week, dropping by over 14% during that period. The crypto token has also suffered a reversal of fortune, as it currently has a year-to-date (YTD) decline of over 9%. That is shocking for a token that enjoyed a 3000% gain in 2023 and even outperformed Solana (SOL), whose rally was one of last year’s major talking points.

However, a major correction like this was expected for INJ’s price, which enjoyed a sustained rally last year, suggesting it was possibly overbought at some point. A price decline like this one is necessary for the crypto token to once again establish itself and make another move to the upside. 

Injective Could Follow Solana’s Trajectory

Crypto analyst Crypto Dona recently suggested that Injective could follow a similar path to SOL’s price action in 2021. Back then, SOL is said to have been stuck between the $20 and $40 price range for more than 100 days. However, just when everyone was about to give up on SOL, it went on a massive run and saw a ten times increase in its price. 

The crypto analyst expects something similar to happen with INJ’s price, stating that a 10x might be around the corner. Injective, being an AI (artificial intelligence) coin, is also likely to keep attracting much attention heading into the latter stages of this bull run. That could reflect positively on its price since more liquidity will flow into its ecosystem. 

The recent purchase by these crypto whales also underlines the bullish sentiment toward the crypto token despite its current unimpressive price action. Members of the INJ community have also expressed optimism about the token’s future trajectory, with Crypto Dona, in particular, stating that its price is still going to three digits. 

At the time of writing, INJ is trading around $32, down over 5% in the last 24 hours according to data from CoinMarketCap. 

Injective price chart from Tradingview.com

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Fake NFT Project Hack? CTO Vanishes After Allegedly Stealing 94 SOL

A new rug pull alert sounded on Tuesday after crypto detective ZachXBT unveiled on-chain details of an alleged hack suffered by an NFT project last month. The project’s CTO announced that a response was in the works but ultimately vanished as criticism grew.

Nuddies NFT, A Hack Or Rug Pull?

On-chain sleuth ZachXBT revealed the alleged misuse of funds by the CTO of NFT project Nuddies NFT.  In a now-deleted post, its CTO Kyle explained that the project was “derugged from its previous founder” and built differently from other NFT projects.

According to the crypto detective, Kyle faked a hack that seemingly stole the project’s funds. On March 3, the alleged culprit posted on the Nuddies NFT Discord server, informing us of the hack.

The post affirmed that Kyle’s Mac was hacked despite “not clicking in any malicious link.” The CTO concluded that a “zombie process” was on his computer for an undetermined period.

This “mini-program” gave control of the computer to “the hacker.” Through the TeamViewer app the attacker gained access to the project and Kyle’s wallets. The post further explained that 90 SOL, approximately $17,000 at today’s price, were taken from the Nuddies NFT creator wallet.

Moreover, the hacker allegedly took control of Kyle’s Discord and stole 150 SOL, worth around $28,300, from his wallets. At the time, he claimed to be “mentally destroyed” by the loss of the project’s treasury money.

SOL, SOLUSDT; NFT, crypto

Nonetheless, the on-chain data compiled by ZachXBT tells a different story. Per the crypto detective’s post, the CTO allegedly lied to the holders and stole the 94 SOL, worth $12,000, when the incident occurred.

The post reveals that the funds were transferred during that day from the Nuddies Royalty Wallet to an exchange deposit at 8:20 UTC. The on-chain investigator claims that a destination transaction was found using time analysis. The transaction to one of Kyle’s wallets accounted for 3.42 ETH, around $11,700, at 8:21 UTC.

The ETH was seemingly used to buy two NFTs: DeGods 2921 and y00t 10991. The DeGod NFT was used as the CTO’s profile picture on X until yesterday.

CTO Answers The Accusations, Then Vanishes

The accusations didn’t go unnoticed by the suspect, who posted on his X account that he was “preparing the answer” with a wink face emoji. After changing his profile picture, Kyle answered some users’ questions about his credibility, to which he replied that his “conscience is clear.”

crypto, nft

In the early hours of Wednesday, Nuddies NFT account shared a now-deleted post informing that the creator wallet was “refilled with 12k USD.” In the post, Kyle reassured that his previous claims of intending to refill the wallet were authentic.

The CTO also claimed he was “waiting for his $W airdrop” to fulfill his promise instead of selling his DeAsset. Additionally, he “stepped out” of the project after giving the access keys to two community members.

crypto, SOL, NFT

However, the story doesn’t end there. Kyle and Nuddies NFT’s account were deleted a couple of hours after the post. The Nuddies website seems not to be working, as reported by an X user.

The project’s future is unsure as one of the community members to whom Kyle gave the access keys was unaware of the situation. Juiceddd, an NFT artist, is one of the two people in charge of the project.

The artist explained that he was responsible for redrawing the entire Nuddies collection while adding “70+ new traits.” Moreover, Juiceddd stated that he “woke up this morning to being the owner of everything.” The artist is contemplating giving his perspective on the incident as he considers that it is generally the artist who “gets fucked” in these situations.

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Solana Whales Are Making Moves – Here’s The Direction They’re Headed In

The price of Solana had briefly crossed $200 before tumbling back down in the last week. This move has triggered a wave of movement across the market, and whales are now showing their hands. Over the last day, there have been a number of notable whale transactions and their destinations could give an inkling as to how these large crypto investors are looking at the market right now.

Solana Whales Move Hundreds Of Millions Worth Of SOL

The whale movements began on Monday when the market had first begun to slow down, with the Solana price falling below $190. The on-chain data tracking platform Whale Alert, reported these transactions, a number of which seemed to happened right next to one another.

The first transaction was one carrying 993,453 SOL which was worth $189.55 million at the time. Then minutes later, the tracker reported the movement of another 1,895,729 SOL worth $361.7 million. Not too long after, it reported a third transaction carrying 1,096,940 SOL worth $209.29 million. Then, the last transaction in this row of transactions was 1 million SOL, valued at $190 million at the time of the transaction.

Now, all of these Solana transactions had originated from unknown wallets and their destination were also unknown wallets. This means that the owners of these wallets are not publicly known and their addressed have not been tagged. In such cases, it could suggest that these whales are selling their tokens over the counter in order to minimize the impact of their selling on the market market. However, it could also be that these whales are just redistributing their coins.

Nevertheless, the whale movements didn’t end here as a couple of hours later, the on-chain tracker would report the movement of massive amounts of SOL once more. This time around, a whale moved 149,999 SOL worth a little over $27.79 million from an unknown wallet to the Binance exchange.

This transaction deviates from the previous four transactions in the fact that its destination is a crypto exchange. Usually, when investors move their coins to exchanges such as Binance, it is to sell their tokens and a $27.79 million sale could put a lot of pressure on the SOL price.

The next whale transaction reported after this was an amore positive one though which involved the movement of 146,121 SOL worth $26.83 million from the Kraken exchange to an unknown wallet. In this case, it is likely that the whale is withdrawing their coins for safekeeping as they wait for better prices. This reduces the selling pressure on the asset.

Even with these whale movements, the SOL price continues to hold up quite nicely. If the selling pressure continues to fall and the pressure from Bitcoin’s price decline is finally lifted, then SOL price could quickly rally above $200 once again.

Solana price chart from Tradingview.com

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Solana Price Could Explode By 80% If This Happens: Crypto Analyst

In line with the broader trend in the overall crypto market, the Solana (SOL) price has fallen by 7.5% in the last 24 hours. However, according to renowned analyst Rekt Capital, there is no reason to switch to the bearish side.

In a recent technical analysis, the crypto analyst highlighted that Solana is currently showing potential for an 80% price rally based on its present consolidation pattern. According to Rekt Capital, Solana is trading within what appears to be a bull flag formation, as depicted on the weekly SOL/USD chart from Binance.

A Bull Flag pattern occurs after a strong, almost vertical price rise and is characterized by a downward-sloping consolidation that resembles a flag on a pole. The “pole” is formed by the initial price surge, while the “flag” represents a period of consolidation with converging trendlines.

Solana price analysis

Traders often watch for a decisive breakout above the flag, which can signal the continuation of the prior uptrend. In Solana’s case, the analyst points out that Solana recently faced a rejection at the top of the bull flag pattern at $208, indicating a short-term setback in its upward trajectory.

“And if Solana keeps this up, it may form a Bull Flag here before breaking out to challenge that Range High $208 resistance again,” Rekt Capital noted.

However, the bottom of this bull flag, which stands at approximately $184, is identified as a critical support level that needs to be maintained to keep the bullish momentum alive. Should Solana manage to hold above this level, the setup may favor the continuation of the uptrend.

Notably, Rekt Capital adds that while occasional dips or “wicks” into the $173 range are acceptable, the price must generally remain above the $184 support on the weekly time frame to validate the bullish outlook. The $173 price level is marked by a blue horizontal line on the chart, serving as an additional support zone.

In terms of price targets, the chart reveals an 80.57% potential rally from the bottom of the bull flag (“pole flag”), which could translate into a target price of approximately $330 if the bull flag pattern is confirmed in the coming days or weeks.

Solana Bears Gain The Upper Hand On The Lower Time Frames

On the lower time frames, like the 2-hour chart, the Solana price lost some momentum, indicating potential short-term consolidation or downward movement. SOL experienced a sharp -13% decline, breaking through a significant upward trendline (black) that had previously provided support throughout an ascending trajectory.

Solana price

The price has sliced through the Fibonacci retracement levels plotted from the swing low at $162.68 to the swing high at $204.19, currently hovering around the 0.618 Fib level at $178.54. Typically, this level serves as a strong support zone, but a sustained break below could accelerate losses toward the next levels at 0.786 ($171.56) and potentially the full retracement at $162.68.

Volume indicators show a marked increase in selling pressure during the price dip, which substantiates the current bearish momentum. Furthermore, the Relative Strength Index (RSI) has plummeted to 29, teetering on the edge of the oversold territory. This suggests that sellers are in control, but also raises the possibility of a relief bounce if the RSI dips further into oversold conditions and triggers a reactive buying response.