Solana Restores Network Outage After Successful Cluster Restart, But SOL Price Still Struggling

Solana, a decentralized blockchain built to enable scalable, user-friendly apps, announced on Saturday that its network is back online following an outage on Friday night caused by a misconfigured node that stopped the blockchain from processing transactions.

A single misconfigured node took down the entire network – the glitch caused the outage for several hours. Solana informed its users about the blackout but raised confidence that its developers were on site working to diagnose and fix the problem.

A validator appeared running a duplicate validator instance, which caused the blockchain to fork because validators couldn’t agree on which one was correct.

The fork caused an obscure code path that left validators unable to switch back to the main fork. The software and blockchain company Stakewiz, which operates a validator node on Solana, explained the matter online via Twitter social media. Stakewiz suggested the Solana network’s failure to rectify the situation was due to a failed node failover setup.

After working to fix the blackout, the Solana developers made a decision to restart the network. The team said they performed the necessary restart of Mainnet Beta at 8 a.m. London time. The restart rebooted the network, and Solana then said “validators are operating successfully now. Network operators and dapps will continue to restore client services for the next several hours.”

Although Solana has been describing itself as a high-performance blockchain, the network has recently suffered a series of multiple outages. In September last year, the network went offline for nearly 18 hours.

In January this year, Solana witnessed a major blackout that lasted as long as 18 hours, the incident prompted anger from frustrated traders who watched their portfolio values plunge while unable to offload tokens. In early May, the network froze for about seven hours until validators restarted. In June, the network support structure suffered an outage of more than four hours.

Due to the latest network outage, the Solana token prices are down by 6.25% in the last 24 hours, according to CoinMarketCap. At the time of writing, Solana’s (SOL) price is trading at $32.93 per coin. SOL dropped by 2.12% in the past 7 days and is down 87.33% below its all-time high.

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Bottom ahead? Solana paints its first ‘death cross’ as SOL losses 50% in January

Solana (SOL) looks poised to paint its first “death cross” this week, raising fears that its ongoing selloff would continue further into February.

Real selloff threat

Notably, the SOL price’s 50-day exponential moving average (50-day EMA; the red wave) will eventually close below its 200-day EMA (the blue wave), signaling a bearish crossover, called death cross, that typically prompts traders to sell.

SOL/USD daily price chart featuring its 50-200 EMA death cross. Source: TradingView

The threat surfaces as SOL looks to close January at nearly a 50% loss — as of the month’s final day, the Solana token was down by over 2.50% to nearly $91, compared to almost $180 at the start. Meanwhile, the catalysts behind SOL’s price crash remain pretty much intact.

Crypto-assets have fallen this month as traders have attempted to assess how fast the Federal Reserve would increase its benchmark rates from near-zero levels to tame booming inflation and tighter jobs market. Solana, as a result, has wiped half its market valuation in January from $55.19 billion to $28.79 billion. That is after it closed 2021 at a whopping 11,144% profit.

That has got some financial experts to expect a “crypto winter” ahead, a term referring to concerning bearish cycles in the cryptocurrency market, such as the one seen during 2018 wherein digital assets’ combined market cap fell by more than 80%.

As of now, SOL’s interim bullish outlook hangs over its possibility to hold above $83, its current support level. A break below the said price floor could have the Solana token find its next pullback opportunity not until $65, as shown in the chart below.

SOL/USD daily price chart featuring its interim support targets. Source: TradingView

Both support levels were instrumental in sending the SOL/USD pair to its record high above $260 last year.

Philip Gunwhy, partner at, remained long-term bullish on Solana, citing its exponential growth in the decentralized finance (DeFi) and nonfungible token (NFT) sectors that boost SOL’s demand. However, the analyst noted that its swift rebound in the short term depends on the performance of the broader crypto ecosystem.

“For Solana, maintaining solid support at $65-85 area is undoubtedly the primary focus for the week while maintaining a longer-term focus to retest its All-Time High around $260,” Gunwhy said.

Rebound scenario

No previous data shows how SOL traders react to a death cross since it will be Solana’s first 50-200-day EMA bearish crossover to date. But considering that people who trade SOL also have been trading Bitcoin (BTC) over the recent years, one can notice that death crosses bother them very little.

For instance, a 50-200-day EMA crossover, witnessed in the Bitcoin market in June 2021, followed a drop towards $29,000. But a month later, the BTC price bounced back strongly, eventually reaching its all-time high of $69,000 in early Nov. 2021.

BTC/USD daily price chart featuring recent death crosses. Source: TradingView

Similarly, over the past decade, death crosses in the S&P 500 (SPX) have lost their significance due to false bearish alarms. For instance, the last two bearish crossovers between the SPX’s 50-day EMA and 200-day EMA — in December 2018 and March 2020 — led to bottom formations, followed by strong price rebounds.

S&P 500 daily price chart featuring recent death crosses. Source: TradingView

That raises the possibility that SOL’s death cross would have its price bottom out in the coming sessions, followed by a bullish reversal. In doing so, the Solana token may eye previous support/resistance levels for a potential rebound move towards its 200-day EMA.

SOL/USD daily price chart featuring rebound scenarios. Source: TradingView

More cues for a bullish rebound also come from the SOL price’s oversold relative strength index (RSI), a classic buy signal.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.