Here is how Hetzner Falkenstein upcoming downtime could affect Solana price
- Hetzner Falkenstein data center’s downtime could hamper the Solana blockchain’s performance, leading to delinquent stakes and network instability.
- This outage might negatively affect SOL price.
- The team behind the project has already put together a plan to prevent the same from happening in the future.
Solana active nodes could face disruption on March 2, causing unwanted effects for the blockchain. A ripple effect might deter SOL price from climbing and perhaps even drag it down.
Network validators in trouble
At the time of writing, almost 15% of all active network stake for the Solana blockchain is housed in the Hetzner Falkenstein data center. The company announced recently that several of its routers would be facing downtime due to planned maintenance starting from March 2 to 5 between 3:00 AM to 5:30 AM CET.
The last time this happened was on February 3, which saw a significant amount of delinquent stake and network instability for several hours.
Now, the Solana team has reached out to all validators in Falkenstein to “consider temporarily relocating their node during the outage, or to have their Foundation delegation temporarily removed during the outage.”
The impact of the last outage on February 3 wasn’t felt as much on Solana price, as it occurred deep in the bull run. Considering the recent market crash, the upcoming downtime could negatively impact this cryptocurrency.
To prevent such an undesired effect in the future, the Solana team added,
“Going forward, we intend to rely on the evolving stake bot program, which will enforce limits on the total amount of stake located in a given data center in order for nodes in that location to remain eligible for a Foundation delegation.”
Solana price at crossroads
Solana price saw a 36% correction from $18.17 to $11.50 between February 24 and 28. Now, a small upswing has resulted in a retest of the 78.6% Fibonacci retracement level at $14.82. Although the planned maintenance is on March 2, it could play a pivotal role in determining SOL’s short-term future.
If the effects are wide-spread and prolonged, then a rejection of the $14.82 supply barrier seems likely. In such a case, Solana price could drop 18% to the 61.8% Fibonacci retracement level at $12.19.
A further spike in selling pressure here could extend this correction to $10.34, which coincides with the 50% Fibonacci retracement level.
SOL/USDT 12-hour chart
Investors need to note that Solana price faces stiff resistance at $14.80 after the recent rebound. If buying orders continue mounting, a decisive 12-hour candlestick close above this supply barrier could result in a 20% upswing to $18.17.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
