Solana Price Analysis: Revisiting the September Network Outage

Updated:

Solana (SOL) sent the cryptocurrency community into panic mode following its network outage in September, which sparked debates about centralized systems vs. decentralized systems and PoW networks vs. PoS systems.

That said, Solana presented a preliminary investigation report into the outage titled ‘9-14 Network Outage Initial Overview’ on September 20. A Report On the network detailed that: “The cause of the network stall was, in effect, a denial-of-service attack.

At 12:00 UTC, Grape Protocol launched their IDO on Raydium, and bots generated transactions that flooded the network. These transactions created a memory overflow, which caused many validators to crash, forcing the network to slow down and eventually stall.”

Solana claimed that its network could facilitate 710,000 transactions per second (TPS). However, the network outage and resource exhaustion occurred when the network reached a load of 400,000 TPS.

The Solana network combines the Proof of Stake (PoS) consensus mechanism with a unique proof-of-history (PoH) system. According to reports, the network went offline when the validator network could not agree on the existing state of the blockchain, preventing the network from confirming new blocks during the outage. That said, a similar incident occurred sometime in December 2020.

Key Solana Levels to Watch — October 15

SOL appears to have finally regained some bullish momentum after breaking above the 200 and 50 SMAs earlier today. The seventh-largest cryptocurrency now targets the critical $170 – $180 resistance zone.

SOLUSD – 4-Hour Chart

Interestingly, an ascending trendline has emerged since its fall to the $116 low in September, further bolstering the renewed bullish sentiment. Also, this bullish resumption comes with SOL in neutral trading conditions.

That said, a successful retake of the earlier mentioned resistance zone should solidify a steady ascent to the $216 all-time high over the coming weeks.

Meanwhile, our resistance levels are $170, $180, and $190, and our key support levels are $150, $146, and $140.

Total Market Capitalization: $2.42 trillion

Solana Market Capitalization: $47.5 billion

Solana Dominance: 1.96%

Market Rank: #7

 

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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.