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SOL Price Analysis: Solana Price Loses Key Moving Average Amid Network Congestion Recovery

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SOL Price Analysis: As SOL price reacts to a weekend of heavy Solana network congestion, bulls remain optimistic about Solana price action.

Solana’s price has fallen after a tumultuous weekend of overwhelming network congestion, yet as developers push for recovery, SOL price analysis reveals that SOL bulls remain optimistic about price action for April.

Solana, the leading Ethereum alternative, known for its high scalability and low fees has exploded in popularity in recent months – especially in the meme coin market.

Solana’s 16th Major Hick-Up: Ethereum Challenges Replicated On SOL

Like Ethereum, which has faced challenges in the past years, especially at the peak of the non-fungible token (NFT) minting and decentralized finance (DeFi) surge, Solana developers are now faced with the same challenges of sustainable exponential growth.

Amid Solana’s 16th major hick-up, market analysts note that a surge in user activity has led to network congestion, causing many transactions to fail.

Even despite the 16th incident, core functionalities remained operational. Despite the news spooking markets, transactions continued to complete to an extent – as about 30% of transactions were approved within 10 seconds.

 

Crisis Response Team: The Race To Fix Solana Congestion

Multiple players and developers are racing to address this issue. For example, the developers behind Anza, a development collective on Solana, suspect Agave, their validator client, might be contributing to the current mess. 

 

In an update to their users, they said they will make a series of improvements in the coming months, and specifically update Agave to improve transaction processing.

As part of their solution, the Solana Foundation, a non-profit promoting Solana adoption, wants developers to implement priority fees.

With priority fees in place, validators, tasked with processing transactions and keeping the network secure, will be incentivized to prioritize certain transactions. 

Besides this measure, other solutions floated include optimizing resource usage and prioritizing transactions from staked validators.

Solana co-founder Anatoly Yakovenko acknowledges the current frustration, noting that congestion bugs are trickier to solve than complete outages.

Unlike outages, which can be patched quickly, congestion fixes require rigorous testing before deployment and this can take a long time.

In the past, Solana had stopped working, sometimes for hours, before the bug was fixed and the network restarted. Since there have now been 16 hick-ups, the network’s reliability has been increasingly called into question.

So, in a further response, the Firedancer validator client will be released to improve network reliability.

In an effort to calm market anxiety, Solana has also revealed plans to release a scheduler, which is aimed at resolving the congestion problem once and for all (testing of this solution should begin in the next week or so).

 

SOL Price Analysis: Solana Price Likely To Rebound From Downtick

Despite Solana’s challenges, SOL bulls are not giving up—in spite of the congestion, the Solana price tracked higher over the weekend

However, because of the intense selling pressure on April 5, prices remain within this bearish bar – and this leaves SOL price exposed in a localized downtick below 20DMA support.

(SOLUSDT)

From a technical perspective, the loss of moving average support leaves bears in control—at least in the short term. Yet, on the long-time frame, the SOL price remains up +130% from January 2024 lows.

Some “diamond hands” might buy the dips above $165 in anticipation of an altcoin bull run after the upcoming Bitcoin halving event.

https://twitter.com/CryptoYoddha/status/1777208088153751920

 

On the other hand, traders might find better entries above 2024 highs of around $200 – indeed, the next feasible target would be 2021 highs of $220.

However, while SOL price analysis reveals bears are gaining control, an emerging presale is poised for an explosive market launch on April 20.

Discover: Dogecoin20 Presale Goes Viral – Hits $10m Raised Ahead of CEX Listing on April 20

(DOGE20)

Jumping cross-chain to the ERC-20 meme coin sector, a new Dogecoin alternative, named Dogecoin20 (DOGE20), has gained impressive viral traction in the crypto community.

With the double-barrelled offering of Dogecoin family status and the seismic opportunity of a DOGE day launch, the excitement is palpable after DOGE20 surged to $10m raised in a viral meme coin presale.

Market anticipation for the project is high now that it is heading for its first major coin listing on an unnamed tier-1 CEX.

The initial launch of DOGE20 trading is set for April 20, a special day for the crypto community.

On April 20, crypto markets will celebrate the Bitcoin Halving event, which will reduce miner’s block rewards by 50%.

However, this year, International DOGE Day also lands on April 20; creating the perfect high-octane market day to launch an already proven viral meme coin.

Buy DOGE20 Here

EXPLORE: HashAi Price Analysis: What Is Hash AI Crypto and Why is HashAI Crypto trending?

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Dalmas is an experienced journalist with over a decade in crypto, technology, and blockchain. His work and that of his partners have been featured in top news outlets, including Forbes, investing.com, and Entrepreneur, among others. He is passionate about crypto and is always on the lookout for the latest trends in these fields. Connect with Dalmas on X @Dalmas_Ngetich

View all Posts by Dalmas Ngetich

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