- Solana’s latest outage has increased negative sentiment.
- SOL fell to $93.4 but quickly recovered to go above $95.
Solana [SOL]which has remained infamous for its outages, has held up well in recent months as no such incidents have been recorded.
However, the streak ended on February 6, when the blockchain’s main grid went down for about five hours, which also had a small impact on SOL’s price.
Engineers from across the ecosystem investigate a mainnet beta outage. This thread will be updated as more information becomes available https://t.co/rfeioQ6BG9
— Solana Status (@SolanaStatus) February 6, 2024
Solana went downstairs again for hours
Multiple Solana validators also took it to X (formerly Twitter) to report this incident. Nevertheless, the engineers identified the problem and came up with a solution within a few hours.
They were working on a new network release called v1.17.20, which included a patch to fix an issue that caused the cluster to stop.
Although the outage was short-lived, it did have an impact on sentiment around Solana.
AMBCrypto’s look at Santiment’s data revealed that SOLThe company’s social dominance peaked during the outage as people started talking about the problem online.
Due to the downtime, negative sentiment around the blockchain also increased during this period.
Source: Santiment
SOL recovered quickly
In addition to market sentiment, the outage also hurt SOL‘s price action. Shortly after the news broke, the price of SOL began to fall, reaching $93.4.
However, the token quickly recovered and climbed above $95 on the same day.
According to CoinMarketCapSOL is up 0.6% in the past 24 hours. At the time of writing, SOL was trading at $95.86 with a market cap of over $41.8 billion, making it the fifth largest cryptocurrency.
Although the token’s price recovered quickly, investors should not expect a major uptrend in the short term as a number of market indicators looked bearish.
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Notably, Solana’s Relative Strength Index (RSI) and Money Flow Index (MFI) took a sideways path, indicating some slow days.
Furthermore, the MACD showed the possibility of a bearish crossover, indicating that there was a possibility of a price decline.
Source: TradingView