Here’s Why Solana (SOL) Price Rising Despite Recent Outage

Solana has been on the investors’ radar lately, amid a surge in the SOL price despite a recent outage. Meanwhile, the Solana (SOL) crypto has shown resilience, experiencing a surge in price and crossing the $106 mark, which has caught the attention of investors. Notably, with SOL now trading above $106, analysts foresee further gains toward the $140 mark.

So, let’s explore the factors driving this rally amid lingering concerns over the network’s stability due to the recent Solana outage.

Solana Price Rallies Despite Outage Woes

The recent Solana network outage on February 6 raised doubts about the cryptocurrency’s reliability, leading to a brief period of selling pressure. However, SOL quickly rebounded from its bearish phase witnessed since late January, demonstrating a robust recovery. Market observers attribute this resurgence to several key factors.

Meanwhile, the surge in Solana’s Total Value Locked (TVL) has been cited as a significant catalyst for the recent price rally. According to DeFiLlama data, Solana’s TVL has reached approximately $1.8 billion, marking its highest level since November 2022.

In addition, Solana Futures Open Interest (OI) surged by 8% to $1.58 billion, indicating strong market interest. Notably, Binance leads the Solana Futures OI list with $658.83 million, followed by ByBit with $418.47 million, CoinGlass data showed.

Moreover, recent price volatility in Solana presented a “buy-the-dip” opportunity for investors, further fueling the rally. Recognizing SOL’s growth potential and market dominance, investors capitalized on the price dip, driving up demand and pushing the price higher.

Also Read: Ethereum Dencun Mainnet Upgrade- ETH Breaks $2,500 As Geth Releases Crucial Update

Positive Market Momentum and Emerging Trends

Analysts attribute SOL’s recent surge not only to internal factors but also to positive momentum in the broader cryptocurrency market. In addition, increasing interest in Solana meme coins has contributed to the upward trajectory of SOL’s price.

Meanwhile, market optimism surrounding Solana’s decentralized exchange, Jupiter Exchange (JUP), has bolstered confidence in the cryptocurrency’s future prospects. With SOL trading above $100 and bullish Solana predictions suggesting a potential climb to $140, the outlook for Solana remains optimistic despite recent challenges.

Notably, as of writing, the Solana price was up 5.16% over the last 24 hours and exchanged hands at $106.16. Its trading volume also rose simultaneously to $23.02, suggesting strong optimism of the investors.

However, the investors should exercise due diligence given the volatile nature of the crypto market. The Solana price has touched a high of $106.25 and a low of $101.03 in the last 24 hours.

Also Read: ALGO Price Jumps Past $0.17, Here’s Why

✓ Share:

Advertisement

Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

Advertisement

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.