Key Points
- Solana (SOL) has seen a 7% increase as it works to recover from recent market downturns and network congestion issues.
- Despite significant losses, Solana has embarked on a recovery effort, also releasing an update to tackle its network congestion.
Solana (SOL) has registered a 7% rise over the past day, which is part of its recovery strategy from recent market downturns. This increase coincides with the release of a new update designed to address the network’s congestion problems.
During the recent market-wide downturn, Solana experienced substantial losses. The downturn also affected Bitcoin (BTC), which dropped to $61,514. Along with the broader market, SOL fell to a six-week low of $116 on April 13, marking three days of continuous losses.
Recovery Efforts and Future Targets
Even though Solana rebounded from the $116 support level, it saw a decline of more than 21% from April 11 to 13. This decline is one of its most significant three-day losses this year. However, after this sharp downturn, the cryptocurrency started a recovery effort, taking advantage of Bitcoin’s rebound to regain the support levels it had lost.
Solana has kept its upward trajectory, aiming to recover and hold the Fibonacci 0.5 level at $159.91. If it surpasses this mark and reclaims $170.35, it could strengthen SOL’s position to target the April 5 peak of $185.21, which aligns with Fib. 0.786. Currently, the altcoin is trading at $154.60 and is expected to face a significant challenge at the 50-day EMA of $160.67. A breakthrough above this level would indicate a shift in short-term momentum from bearish to bullish.
Addressing Congestion Issues
As Solana continues its recovery, efforts are being made to address its unique congestion challenges. The surge in meme coin trading and increased adoption have resulted in increased network activity, leading to congestion and occasional transaction failures.
Last week, Anza, a group of Solana developers, introduced a network upgrade, version 1.18.11, on the devnet. They encouraged validators to test its reliability on the testnet, marking one of the first steps taken to address the congestion issues. More recently, Anza announced the deployment of version 1.17.31 on the mainnet, highlighting its availability for public use. They confirmed that the update includes improvements designed to address the existing congestion issues until the official release of version 1.18 on the mainnet.
Despite the ongoing congestion challenges, Solana has effectively prevented any significant downtime. The network experienced its only major outage of the year on Feb. 6, lasting for over four hours.
