Despite the devastating five-hour disruption that caused a 6% decline in SOL’s value over the course of a week, the altcoin continues to stand strong with a 10% increase in the past fortnight and an astounding 300% growth over the last 12 months.
However, the recent plunge also resulted in the liquidation of approximately $3 million worth of long positions, adding salt to the wound of its price drop.
But there is still hope for Solana’s future. If the network can swiftly bounce back from the outage and maintain a stable performance for months to come, it is bound to soar again in due time.
From Outage to Opportunity: Solana’s Price Forecast After $3 Million in Longs Get Liquidated – Will SOL Make a Comeback?
One could argue that SOL’s resilience during the outage is quite admirable, as its indicators remain in a stable state. As evidenced by its middling positions, such as its relative strength index (purple) holding steady at 50, the coin’s fate hangs in the balance, teetering between further decline or a potential rebound.
The 30-day moving average (in a cheerful shade of yellow) has reached a peaceful plateau in the past few days, indicating a promising outlook that it is not plummeting. However, there may be differing opinions among experts, with some predicting a potential downturn on the horizon.
Despite the 30-day average soaring high above the 200-day average (shown in blue) for an extended period, it appears that the Solana price is on the brink of a downfall.
However, die-hard supporters may argue that this is a testament to SOL’s resilience as it has yet to experience a substantial plunge in value despite a five-hour shutdown.
Even though its trading volume has dwindled from a remarkable $4 billion at the beginning of the month to $1.8 billion presently, it still outshines numerous other tokens by a significant margin.
The allure of SOL remains strong, as evidenced by a slew of major transfers from exchanges within the past week.
Despite its promising short-term outlook, yesterday’s unexpected outage has ignited concerns about potential anguish in the foreseeable future.
Should Solana suffer another disruptive shutdown in the foreseeable future, it has the potential to deliver a devastating blow to the confidence placed in the platform.
The prevailing belief was that Solana had made significant strides since its turbulent 2022, which was plagued by multiple outages. While one isolated incident this year may be pardonable, a repeated pattern could see the market grow less forgiving.
Such a scenario would undoubtedly have a profound impact on the price of Solana, potentially hindering its ability to recover and reach the projected $100 mark in the coming weeks.
For those wary of investing in SOL at the moment, exploring newer altcoins may be a more appealing option. Presale tokens, in particular, are gaining traction, with many showing great potential.
