Solana, SOLUSDT, is in hot water once again due to the ongoing network congestion on its blockchain. Several traders and yield farmers have been complaining about failed transactions on the network for the past few days. It is not the first time that the top L1 platform is facing such issues and back in September 2021, Solana users had to face a network outage for almost a whole day. It is also worth mentioning that Solana’s blockchain is still in its beta phase with a major network upgrade expected later this year. Nevertheless, repeated network failures have made investors question Solana’s fundamentals and whether it is ready to host more complex DApps on its network.
The Total Locked Value (TVL) of Solana has plummeted as a result and it is currently down by almost 24% for the week. This is also the biggest loss in TVL by any major blockchain platform as per DeFi Lama in last week.
Sol Price Outlook
The ongoing week has been brutal for crypto. While most of the cryptocurrencies are down around 25% for the week, Solana (Sol) price is still down by 37%. The price is down still 65% down from its December highs and currently trading at $88.
The daily chart is also showing a clear breach of the head & shoulders’ neckline. If Sol price fails to make new highs anytime soon, then the current breakdown can lead the price to the early 30s area, where lies very strong support. However, a bounce from the 0.786 fib level at $72 is also on the cards.
n the final hours of Monday, crypto markets showed some signs of relief with Bitcoin price briefly touching $37,400. Although Sol price has been in a continuous downtrend and fallen below 200 MA, the price is appearing to make a falling wedge. If the ongoing crypto relief rally continues then Sol price needs to regain $150 to gain a bullish outlook. After that, the bulls will probably target the December high of $204.