Solana Suffers Second Attack in One Week Amid Debilitating Crash

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Solana (SOL) has had a rough start to 2022 as the network suffered its second incident in the first week of January alone, bringing its total network incident to four in the past few months.

The Solana team announced that the latest incident came due to an increase in high computer transactions. Due to this event, the network’s capacity fell by a few thousand TPS from the originally claimed 50,000 transactions per second (TPS).

The team explained that this was the reason for the numerous failed transactions experienced by many users recently, adding that a team of developers is already working to address the issues.

This issue comes less than days when the SOL network suffered a DDoS attack, where users experienced a similar downtime. While the common theory for Tuesday’s attack is that it was a distributed denial-of-service (DDoS) attack, Solona co-founder Anatoly Yakovenko argued on Twitter that it was just the “pain of getting a new runtime commercialized.”

Reacting to the recent developments, Chief Investment Officer at Cyber Capital, Justin Bons, recently expressed his disappointment with Solana and took to Twitter to highlight reasons why he does not support the project. Bons claimed that SOL is “consistently displaying a pattern of bad behavior” and “prioritizing attracting ignorant investors over good blockchain design.” He added that a DDoS attack combined with a 51% attack could “temporarily gain proportional-staked control over the network by attacking other stakeholders.”

However, Yakovenko dismissed these claims, calling them “exhausting nonsense.”

Key Solana Levels to Watch — January 7

Apart from suffering two attacks on its network this week, giving it shaky fundamentals, Solana has fared worse on the technical front as it shed over 20% of its value over the past three days. Along with most of the market, SOL recorded a drastic sell-off over the past few days, which sent it from a comfortable sitting around the $170 region to a shocking $134 low earlier today.

SOLUSD – 4-Hour Chart on FTX. Source: TradingView

That said, the cryptocurrency now clings to the $140 mark for support, as bears show no sign of a slowdown. With that, we could see the fifth-largest cryptocurrency race to the $130 low over the coming days as more buyers liquidate and seek refuge in stablecoins.

Meanwhile, my resistance levels are $140, $150, and $160, and my support levels are $130, $124, and $120.

Total Market Capitalization: $1.99 trillion

Solana Market Capitalization: $43.5 billion

Solana Dominance: 2.16%

Market Rank: #5

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.