Solana’s share price dips amid network problems

Yesterday, on February 6, the main cryptocurrency network Solana SOL $258.55 Solana -1.04% Market capitalization $122.73 billion VOL. 24 hours $1.19 billion faced problems that led to the shutdown of all protocols. The failure affected both investors and developers. The problem was fixed within 2 hours by releasing a patch. Against this backdrop, Finbold analysts assessed the market dynamics of SOL and told what to expect from the coin in the near future.

Over the past day, the asset lost about 3% in value and settled near $ 95.9. Technical metrics indicate that the next strong area of demand is at $ 88.71. Experts have not ruled out that the quotes may first test this area of demand before heading to retest the nearest resistance at $ 101.78.

Finbold analysts noted that the incident with the Solana network could negatively affect investment sentiment in the short term. It is noteworthy that Ethereum ETH $3,341.40 Bridged Ether (StarkGate) -0.53% Market capitalization $0.28 billion VOL. 24 hours $2.05 billion , which is considered a competitor of SOL, has faced similar problems in the past.

According to Solana Status, in 2022, there were several major incidents related to the functioning of the native network. The asset lost about 77% of its value at the time. The developers then implemented a series of updates that were supposed to fix the problems. Finbold experts emphasized that crypto assets are a high-risk instrument in themselves. However, technical problems cause distrust on the part of users, which negatively affects the market dynamics of the virtual coin.

At the time of writing, Anatoliy Yakovenko’s native blockchain token is trading at $ 95.5, which is 0.2% lower than yesterday. The coin’s market capitalization amounted to $ 41.7 billion. Traders made daily trading deals worth $ 1.6 billion.