- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
MANTA suffers 4% pullback after unlocking tokens worth $40 million
Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks.
XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says
The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30.
Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction
Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000.
If Bitcoin restarts bull run, these altcoins are likely to explode Premium
If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.