Among the largest altcoins by market value, Solana (SOL) made headlines today due to issues within its network. The confirmation time for transactions has increased, and reports of the network halting have started to circulate. SOL Coin investors, familiar with such outages, have initiated limited panic sales, driving the price to the $94 region. So, what will happen next?
Solana (SOL)
Network interruptions are a serious issue for many cryptocurrencies and can negatively affect their price. However, Solana seems to have accustomed its community to similar issues, having experienced them several times before. Although Solana validators, which can run on powerful servers, make a faster and cheaper network possible, there are still unresolved issues regarding uninterrupted operation.
With the latest incident occurring last year, Solana developers have made some updates aimed at completely eliminating these outages. As of the time this article was prepared, the SOL Coin price is at $94, and the recent losses are not particularly abnormal compared to the general altcoin market, especially since Bitcoin has once again dropped below $43,000.
SOL Coin Price Commentary
On the daily chart, the SOL Coin RSI moved above the neutral zone in October 2023, indicating the start of an upward movement. It then fell below 50 in January 2024 but managed to rise above the neutral zone again. Assuming demand does not shift to the oversold region, the uptrend could continue in the future.
However, the Elliot wave count on the daily chart does not confirm the direction of the trend. It cannot be definitively stated that the fourth corrective wave for SOL Coin, assumed to have reached its peak during the December high, has ended. If the corrective wave continues, SOL Coin could fall below the $79 bottom.
Popular cryptocurrency commentator Altcoin Sherpa wrote;
“I am not actively trading, but I think it will be a big winner in 2024. However, I have not been able to get a clear perspective on where it will go in the interim. The idea of a double top forming at $120 is appealing, but closes below the $100 resistance could lead to a drop to $70.”
SOL Coin‘s $100 resistance and RSI performance will be decisive for the next target. If the fourth wave is not yet complete, the target is $69, and if the fifth wave has started, a recovery to the $140 resistance can be expected.
