Solana, who had a serious problem with her network last week, has had the worst performance in the last 100 days among the top 100 currencies. However, in the market view of this digital currency, there is an upward technical pattern that can bring the price to $ 250.
to the Report Coin Telegraph, the price of Solana digital currency fell again yesterday. Solana’s price drop these days is due to a disruption that occurred last week in the main network of this digital currency and caused the confidence of investors to be damaged.
The Solana market has always been down after the price reached the peak of $ 221.38 on September 9 (September 18) and yesterday the price decreased by 13.27 percent to the bottom of $ 133.53. Overall, the market has experienced a 40% drop since Solana reached its all-time high, while prices have tripled in the past 30 days.
Solana had the worst performance among the top 10 currencies in the market yesterday and the weakest performance among the top 100 currencies in the last 7 days. At the time of writing, each Solana unit is trading at around $ 156. Prices have risen 7% in the last 24 hours and decreased by 11.5% in the last 7 days. It is worth mentioning that Solana’s return in the last one year exceeds 5.374%.
Network outage hit Solana market
Solana fans hail the network as Ethereum’s main competitor. Users compare the two networks due to Solana’s higher speed and lower fees compared to Ethereum.
On September 14 (September 23), Solana’s network was attacked by a service shutdown (DoS), and increasing the processing speed of transactions to 400,000 transactions per second rendered the network inaccessible. As a result, Solana’s main network was down for 18 hours, making decentralized applications out of reach.
According to Solana’s development team, the main reason for the disruption seems to have been Raydium decentralized exchange bots, which increased the network processing pressure to 400,000 transactions per second by over-purchasing Solana tokens. Solana validators, on the other hand, were unable to prioritize transactions, and this led to network splitting.
On September 14, Solana experienced a 19.17 percent decline to $ 137.15, but most of the reversal continued and the Kendall closed daily at 6.47 percent.
Gavin Wood, co-founder of Ethereum and creator of the digital currency Polkadot, has said that the Solana blockchain works with a set of proprietary, closed-end servers that speed up the network, but at the cost of centralizing the network. Ethereum, meanwhile, has been able to successfully resist similar attacks.
The Solana Development Team tweeted on September 16th (September 25th) and promised to take more steps to prevent hacker attacks in the future. The Solana Foundation also said it plans to release an analysis next week to look into the details of the cause of the problem.
The rising flag raises the price to $ 250!
Despite the wide price correction in recent days, Solana is expected to resume its uptrend, as an uptrend is taking shape in the digital currency market.
This pattern, called the “uptrend”, is formed when the price fluctuates in a bearish channel (flag) following a significant uptrend (flagpole). If the pattern works correctly, the price will cross the trend line above the downtrend channel and will usually rise to the height of the flagpole.
Also read: Familiarity with 10 technical analysis chart patterns that every trader should know
Solana’s recent price movements are pushing the digital currency market into a rising flag. As a result, buyers’ next attempt to cross the uptrend line of the downtrend can raise Solana’s price by as much as the height of the flagpole. Since the height of this bar is $ 107, the price can increase up to $ 250.