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Solana’s price has fallen after a tumultuous weekend of overwhelming network congestion, yet as developers push for recovery, SOL price analysis reveals that SOL bulls remain optimistic about price action for April.
Solana, the leading Ethereum alternative, known for its high scalability and low fees has exploded in popularity in recent months – especially in the meme coin market.
Solana's transactions fail about 8 times out of 10.
Validators cannot agree what is the true state of the network, so they fail. Repeatedly.
Maybe if they turn it on and off again it will fix it. 🤣 pic.twitter.com/zxBQjpzAgM
— Duo Nine ⚡ YCC (@DU09BTC) April 8, 2024
Solana’s 16th Major Hick-Up: Ethereum Challenges Replicated On SOL
Like Ethereum, which has faced challenges in the past years, especially at the peak of the non-fungible token (NFT) minting and decentralized finance (DeFi) surge, Solana developers are now faced with the same challenges of sustainable exponential growth.
Amid Solana’s 16th major hick-up, market analysts note that a surge in user activity has led to network congestion, causing many transactions to fail.
Even despite the 16th incident, core functionalities remained operational. Despite the news spooking markets, transactions continued to complete to an extent – as about 30% of transactions were approved within 10 seconds.
Solana hang on there bud@TrojanOnSolana traders don't even notice this, swaps still only take less than 10s on average even with this unprecedented level of congestion. pic.twitter.com/iwewCqsJQP
— Donnie (@DonDeCastillon) April 7, 2024
Crisis Response Team: The Race To Fix Solana Congestion
Multiple players and developers are racing to address this issue. For example, the developers behind Anza, a development collective on Solana, suspect Agave, their validator client, might be contributing to the current mess.
It's Saturday night and @anza_xyz devs are cooking and testing some new patches https://t.co/sXc2jhsBKQ pic.twitter.com/89uHwZrdMG
— Anza (@anza_xyz) April 7, 2024
In an update to their users, they said they will make a series of improvements in the coming months, and specifically update Agave to improve transaction processing.
As part of their solution, the Solana Foundation, a non-profit promoting Solana adoption, wants developers to implement priority fees.
With priority fees in place, validators, tasked with processing transactions and keeping the network secure, will be incentivized to prioritize certain transactions.
Besides this measure, other solutions floated include optimizing resource usage and prioritizing transactions from staked validators.
Solana co-founder Anatoly Yakovenko acknowledges the current frustration, noting that congestion bugs are trickier to solve than complete outages.
Unlike outages, which can be patched quickly, congestion fixes require rigorous testing before deployment and this can take a long time.
dealing with congestion bugs sucks so much more than total liveness failure. the latter is one and done, bug is identified and patched and chain continues. the former has to go through the full release and test pipeline. shipping fast is impossible 😭😭😭
— toly 🇺🇸| bip-420 (@aeyakovenko) April 5, 2024
In the past, Solana had stopped working, sometimes for hours, before the bug was fixed and the network restarted. Since there have now been 16 hick-ups, the network’s reliability has been increasingly called into question.
So, in a further response, the Firedancer validator client will be released to improve network reliability.
In an effort to calm market anxiety, Solana has also revealed plans to release a scheduler, which is aimed at resolving the congestion problem once and for all (testing of this solution should begin in the next week or so).
The current Solana scheduler slows down because 6 threads in the banking stage attempt to process (serialize & execute) 128 of the most recent tx fed into the lead validator.
What ends up happening is these threads get confused trying to lock conflicting tx in parallel from the… pic.twitter.com/u0ba7S20Iw
— Rex St. John (@rexstjohn) March 18, 2024
SOL Price Analysis: Solana Price Likely To Rebound From Downtick
Despite Solana’s challenges, SOL bulls are not giving up—in spite of the congestion, the Solana price tracked higher over the weekend.
However, because of the intense selling pressure on April 5, prices remain within this bearish bar – and this leaves SOL price exposed in a localized downtick below 20DMA support.
(SOLUSDT)
From a technical perspective, the loss of moving average support leaves bears in control—at least in the short term. Yet, on the long-time frame, the SOL price remains up +130% from January 2024 lows.
Some “diamond hands” might buy the dips above $165 in anticipation of an altcoin bull run after the upcoming Bitcoin halving event.
https://twitter.com/CryptoYoddha/status/1777208088153751920
On the other hand, traders might find better entries above 2024 highs of around $200 – indeed, the next feasible target would be 2021 highs of $220.
However, while SOL price analysis reveals bears are gaining control, an emerging presale is poised for an explosive market launch on April 20.
(DOGE20)
Jumping cross-chain to the ERC-20 meme coin sector, a new Dogecoin alternative, named Dogecoin20 (DOGE20), has gained impressive viral traction in the crypto community.
With the double-barrelled offering of Dogecoin family status and the seismic opportunity of a DOGE day launch, the excitement is palpable after DOGE20 surged to $10m raised in a viral meme coin presale.
Market anticipation for the project is high now that it is heading for its first major coin listing on an unnamed tier-1 CEX.
The initial launch of DOGE20 trading is set for April 20, a special day for the crypto community.
On April 20, crypto markets will celebrate the Bitcoin Halving event, which will reduce miner’s block rewards by 50%.
However, this year, International DOGE Day also lands on April 20; creating the perfect high-octane market day to launch an already proven viral meme coin.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
