Solana price targets rebound above $160 after network outage

The SOL/USD brace had dumped to $145 crossed large markets, with immoderate exchanges signaling deals arsenic debased arsenic $137

Solana is trading astir the $160 terms portion aft recovering from a double-digit dump successful aboriginal trades connected Wednesday. 

The downturn successful SOL prices saw it plunge from intraday highs of $170 to $145, threatening much losses arsenic sentiment astir the cryptocurrency turned negative.

The breakdown had besides seen bears question to consolidate their clasp beneath a cardinal uptrend line, with the drawdown adding to the wide losses seen implicit the past fewer days. Bulls are, however, looking to clasp supra $150 arsenic they people caller momentum towards $200.

SOL/USD chart. Source:  TradingView

Why did SOL terms crash?

The cryptocurrency’s worth against the US dollar had touched highs of $170 successful precocious trading connected 14 September, but the quality of the degraded show arsenic the web got flooded with transactions appeared to invitation abrupt downward unit from panicked traders.

At 1 time, the transaction load peaked astatine 400,000 TPS (transactions per second), with the web exhaustion starring to forking arsenic efforts by engineers to resoluteness the incidental proved unsuccessful. Later, aft respective hours of being offline, Solana announced a mainnet restart had successfully taken place.

The squad expects the strategy to “recover implicit the adjacent respective hours, astatine which constituent afloat functionality should beryllium restored,” noted an update posted connected Twitter.

Despite this setback, Solana remains 1 of the apical performers successful the crypto marketplace implicit the past respective weeks.

The autochthonal cryptocurrency of the blockchain level that immoderate are calling an “Ethereum killer” is up implicit 200% successful the past 30 days aft it broke aggregate milestones amid its parabolic rally to an all-time precocious of $213.47 connected 9 September 2021.

At the clip of writing, Solana has a marketplace capitalisation of $48 cardinal and presently ranks seventh among the largest cryptocurrencies by marketplace valuation.