Solana Breaks Under $116, Bears Brace for $70 – FX Leaders
- The development team at Solana has announced that the last issue was caused by program cache exhaustion
- Solana is trading at $89 with a selling bias, disrupting the support at $116. Now it’s acting as a resistance level for SOL/USD
- The blockchain network faces another network congestion issue that coincides with the wider crypto market slump, putting downside pressure on prices
The SOL/USD closed at $91.784, after hitting a high of $99.835, and a low of $80.919. SOL/USD dropped on Monday and extended its decline to reach its lowest price since August 2021, below the $100 level. The blockchain network faced another network congestion issue that coincided with the wider crypto market slump. This dragged the prices down. Over the weekend, the Solana network suffered from an overload, due to bots spamming the network. The congestion lasted about 30 hours, which was deeply concerning for the investors. The official Twitter account of Solana has stated that the blockchain was experiencing high levels of network congestion, which was tied to excessive duplicate transactions. The founder of Solana, Anatoly Yakovenko, said that apparently, the bots were sending duplicate transactions, which was adding to the problem.
This is not the only issue that the Solana network has faced in recent times. A few days back, Solana witnessed another issue that prompted Binance to pause withdrawals via the network, and it has yet to resume. Certainly, Solana was not the only blockchain experiencing issues during the market crash, but the network got some attention because it had become a darling of large trading houses in the crypto industry.
The development team at Solana has announced that the last issue was caused by program cache exhaustion, while the duplicity of transactions is causing the current issue. But whatever the reason, the network congestion itself weighed heavily on the Solana token and dragged its prices below the $100 mark to as low as $80 on Monday.
Solana (SOL/USD) Technical Outlook
Solana is trading at $89 with a selling bias, disrupting the support at $116. Now it’s acting as a resistance level for SOL/USD. The SOL/USD has room for a firm selling bias on the daily timeframe. SOL’s next support prevails at 70, which is being extended by the low of Aug 26, 2021, at $100. Therefore, taking a sell trade under the $100 level seems like an excellent plan. Good luck!