- The Solana network suffered a drop in performance due to a spike in high compute transactions, reducing its capacity.
- The network was plagued with failed transactions as developers worked on the resiliency.
- Analysts noted Solana's freefall and predicted the altcoin's drop to $140.
Solana price dropped over 7% in the past 24 hours. The network suffered from degraded performance, and the altcoin's price plunged.
Solana price dropped below $140 in the recent price drop
Solana network was subjected to severe criticism in response to the recent drop in the altcoin's performance. The network was hit by a spike in high compute transactions, reducing its capacity to several thousand transactions per second.
Therefore, transactions of users on the Solana network failed. Developers across the Solana ecosystem worked together to address these issues and improve the resilience of the Solana network.
The incident drove Solana price to freefall, and the altcoin has posted over 37% losses in the past 30 days.
@Trader_XO, a pseudonymous crypto analyst, has predicted a bounce in Solana price if it drops to $120.
$SOL
— Trader XO (@Trader_XO) January 6, 2022
$120 looks good for a swing trade (not looking to buy and hold spot at these levels).
Expecting a decent reaction around there if price tags it. pic.twitter.com/un4cKwYrih
@AltcoinSherpa, a crypto analyst and trader, evaluated the Solana price trend and predicted a drop to the $140 level. The analyst believes that the Bitcoin pullback fueled the Solana price drop since altcoins have historically reacted negatively.
$SOL: My plan for #Solana would just to be to wait for 140ish right now. I think that it will likely come if $BTC pulls back a bit. Lots of confluence in that area; 200D EMA, HVN, etc. pic.twitter.com/TEcVpw5hCp
— Altcoin Sherpa (@AltcoinSherpa) January 5, 2022
@ShardiB2, analyst and investor, argued that Solana was oversold before the drop to $140, and the altcoin is still in the same zone.
$SOL
— Don't Follow Shardi B If You Hate Money $UST (@ShardiB2) January 5, 2022
Look how oversold that got...still is... pic.twitter.com/qrwrSDRUWM
FXStreet analysts believe that Solana bears have taken over, which could push the altcoin's price lower. The analysts had predicted Solana price drop to $150.
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
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.