Solana Network Outage: Price Plummets As Community Restores Cluster
• Solana experienced a long-forking event on 25 February, leading to a network-wide disruption in transactions. The community was able to successfully resume the cluster on 26 February.
• The market reacted slightly to the incident, with volume increasing slightly in the 24 hours following and SOL’s price action facing a 2.64% downside.
• While SOL sat on its 50-day MA at press time, there is still a chance of extended downside as the weekly pullback reflects bearish sentiment in the market.
Solana Experiences Network Downtime
Solana users were unable to conduct transactions on their network on 25 February due to a long-forking event, which reportedly caused a network-wide problem. On 26 February, however, Solana Status informed that „the Solana community successfully resumed the cluster“.
Market’s Reaction To Incident
The incident sparked some increased social dominance as news spread about it but did not have much of an observable impact due to Solana’s recent decline in volume. There was only slight increase in volume in the last 24 hours which may suggest that the market reacted to it and SOL’s price action faced some downside by as much as 2.64%.
Potential Pivot Point?
At press time, SOL sat on its 50-day MA which may normally be considered a potential pivot point but an extended downside is still possible considering that the weekly pullback reflects bearish sentiment in the market overall.
Long Forks Create Problems For Networks
This isn’t Solana’s first technical challenge triggered by network glitches resulting from long forking events halting operations for some time before reboots are conducted. Despite investigations into what caused this particular event, no source has been revealed yet and validators and engineers are discussing various options for solutions moving forward.
Overall, while there has been some slight reaction from investors after this latest incident involving Solana; there is still potential for further downsides given its current position in relation to its weekly highs and lows reflecting bearish sentiment in the crypto markets at large