Solana’s Resilience Amid Network Challenges

The long-term impact of congestion on Solana’s price remains uncertain, influenced by market sentiment.

Despite a brief correction, Solana (SOL) remains one of the top performers in the current crypto bull run, demonstrating its resilience and outpacing the market as a whole.

Nevertheless, despite Solana’s remarkable expansion, the network continues to encounter persistent difficulties in the form of network disruptions. Consistent with the network’s history, the Solana blockchain has experienced significant congestion issues and issues over the past two days.

The congestion concerns are predominantly attributable to the growing user base and their engagement in on-chain activities, specifically about the proliferation of meme coins and decentralized exchange transactions (DEXs).

Although increased network activity may elevate the value of the corresponding token, it regrettably leads to a subpar user experience characterized by failed transactions.

The advancement of the blockchain has been impeded by recent setbacks. Up to 70% of non-voting transactions on the network have failed in recent weeks, signifying a significant increase in transaction failures.

Solana has a documented record of frequent downtime incidents, most notably a notable disruption that occurred in early February 2024. During this period, the network was inactive for more than five hours due to block production halts.

Solana has encountered approximately six significant failures and fifteen days of partial or complete network disruptions since January 2022. In its postmortem report regarding the February 9 outage, Anza, a software development firm with a specific concentration on Solana, identified a vulnerability in the Just-in-Time (JIT) compilation cache of Solana.

Amid the network’s pursuit of resolutions, investors are closely examining the price trajectory of SOL. At this time, SOL is exhibiting short-term resilience by maintaining its price above $170, an increase of approximately 2% over the past twenty-four hours.

Given the resurgence of network concerns, the enduring inquiry is whether SOL can sustain its present level of progress.

Notably, the congestion could undermine confidence in the efficacy of its network. A lack of efficacious resolutions for ongoing congestion may incite adverse sentiment and result in a decrease in the price of SOL.

Analyzing Solana’s Price Trajectory

In analyzing the subsequent price trajectory of Solana, crypto analyst Rekt Capital noted that the cryptocurrency must maintain support above $184 to sustain its favorable run.

Nevertheless, the analyst also observed that a degree of downward volatility, which could potentially extend to $173, is to be expected given SOL’s consistent performance above the bull flag bottom at $184.

Notably, artificial intelligence (AI) is utilized by the cryptocurrency price prediction platform CoinCodex to forecast optimistic sentiments for SOL shortly. The tool predicts that by April 11, SOL will have surpassed the $200 threshold and be trading around $230.

As of the time of publication, SOL was trading at $174, reflecting weekly losses exceeding 10%.

As of now, it is unknown how the congestion will affect the price of SOL on a long-term basis, given that the asset has appreciated notwithstanding the network outages. Moreover, the price trajectory will be influenced by the overall sentiment of the market.