SOLANA (SOL) Network Issues And The Crypto Price!!
So what are we looking at from here? Music coin traders? Coin traders, coin traders: how are we doing today, thanks for joining me, for the show we are gon na be looking at salon again did just cover a couple days ago. We are gon na touch on what we said couple days ago and then also look at the current setup right now and what we are seeing with this retracement, along with a lot of the recent news. Announcements about a network outage, got a lot to cover today. In the show so make sure you stick around, we are diving into salon sol on that ticker. You know what to do. If that sounds good smash, that free, like button lets, go diving right into it. Today we are looking at solana and having a lot of network issues. Specifically, we are looking at a lot of transactions that are creating a denial of service and sucking up all of the memory on the network. Essentially so they are trying to find a fix right now and ultimately, there has been a vote to restart the network and hopefully have that fix the issues. If we switch on over to soul scan right now, we are looking at transactions on the solana network. So you can see that the last one was posted 11 hours ago, and i can even refresh this page too. Just so. You know that it is current, so we are still looking at a down network right now, so gon na be hoping that we do get these issues fixed soon.
Now, keep in mind that a lot of transactions on exchanges are essentially layer, two and theyre not actually a transaction on the network itself, so effectively its just the keys, changing ownership on the exchange, which is centralized and thats. Why we dont get a lot of that market driven volume published here on the blockchain? So if you did actually try to withdraw your salon from an exchange that actually wouldnt be able to go through because we are getting this network outage, which does still need to be resolved. So one of the important things to note and one of the things thats been up for discussion and debate during this whole network issue is despite the fact that solana is on mainnet beta. The solana team did announce that they were able to stop the network themselves, which has raised questions about centralization and now ethereum actually experienced something similar. But while the issue is being solved and mitigated, the ethereum network did not actually shut down, unlike solana, what its been doing right now. So the big issue is that it has been raising some questions about centralization and some ideas that, despite being in a blockchain network, we might not actually have as much centralization for this type of project as we think right now and whether or not this is a Result of being in mainnet beta im, actually not sure right now, but it is something to definitely be mindful of it does seem like this was a cause for concern for solana, so they made an update.
That kind of applies to this directly talking about how mainnet encountered this dos or a denial of service issue topping out at 400 000 transactions per second, which, on the surface, seems extremely bullish. Now i think they did claim to be about 50 000 transactions per second. So, to see 400 000 come in shows that there wasnt the ability yet to properly prioritize which transactions are coming in and actually should be implemented and published to the blockchain first. So, nonetheless, the engineers were trying to stabilize the network and have been unsuccessful, but the claim that they actually did make is talking about how the validator community has elected to coordinate a restart of the network. So i do think that that might speak a little bit more to the decentralization concerns talking about a validator community election personally, im still under the belief that this is a little bit centralized if one entity is able to completely shut down a network on its own. Despite the fact that it is for things like a network upgrade with the network issues, we are thinking that the validators will need to upgrade and redeploy, and estimates for that are that it will be about 24 to 48 hours to fix so likely by tomorrow, or In the next day now, looking at the video from two days ago, we were talking about things that needed to happen in order for solana to see an upside run and a continuation to an upside target of 300.
. One of the things we did talk about is that we did need to see an uptrend continue for search volume and not necessarily negative search volume like were probably getting now, but more so interest from a retail money coming in, which is going to help to push Prices up a lot higher after that much needed pullback from a completely over extended, run and pump. Now, in the last video two, we were talking about how breaking the 170 support was also going to lose the uptrend and likely would result in a further continuation and testing some lower supports around 150. So ultimately, that is why we always need to discuss bearish cases and scenarios, because there is always a potential that things like that can play out. So knowing what possible scenarios and outcomes we could be looking at is always essential, because then you are ready and prepared for anything. Just like this bearish case that we talked about two days ago, where we were actually worried about losing this 170 line of support, which, as you can see now on this four day, chart has flipped into a very nice point of resistance and then as well. We are looking at it meeting up with a lot of these exponential moving averages, which have now basically started to flip almost completely bearish. So knowing now that we have made lower lows, lower lows and now lower lows with lower highs, lower highs after a lower high.
Very much in this downtrend, but it is going to depend on how much volume starts to come in and also where we can find a longer term support floor. So right now we are looking very strong and supportive right at 150. This is a huge psychological level and its nice to see it being such a strong, supportive level. So we cant see a lot of bulls buying price dips when we actually do get below this level. So, as you can see, support twice looking left support twice again, confirming it as a floor on this bounce before hitting the all time high and then also looking left even farther before we hit the all time. High big point of resistance before running up forming this close and then continuing on to the all time high, so 150 is going to be our big point of support right now and not sure how long the network upgrades are going to take. I do suspect that if they do take a little bit longer then likely that will increase the amount of bearish pressure that will ultimately be coming in solana. But do you want to actually flip over here to the daily and talk about? We expect a pullback. Nonetheless, despite having bearish news to drive it and right now, we are looking at a big point of support being hit on this fibonacci retracement so from the low, which was just below the 22 level, which did hit on the 20th of july running up to the All time high as the high for this price move, hitting on the 9th of september, so now seeing a very nice pullback which is kicking off and seeing a lot of dipline when we are hitting this big 38.
2 retracement on this fibonacci, like i have talked about Before i think the 38.2 is always my ideal target for a pullback and a retracement, i mean realistically, it would be the 23.6 thats not as likely in the crypto space, though so. The 38.2 is one of the ones that i like to see. Finding a little bit more of that longer term support and the reason is, is because, after a big move were a lot more likely to pull back, retrace, establish a floor and continuing a pump to the upside to break the all time. High were a lot more likely to have the scenario play out if we do pull back and find that support along the 38.2. So right now we are looking at a price of 141.96, so basically the 142 line and looking left a little bit more. This was a point of consolidation and the heartline for this consolidation move before it ended up to see the all time high, but nonetheless we are still finding fibonacci support, combined with a lot of exponential moving average support. We havent even seen this daily run down yet and test the 26.. However, with the daily closing in about 10 minutes, it does look like we probably will end up breaking this 12 period, expense moving average and seeing that close below it. Despite the fact that, over the last two days, we have seen extremely long lower wicks on these candles indicating a lot of buying pressure for solana and overall, i do still think the sentiment and emotions are good enough in the crypto space and especially for solana that I dont think were gon na actually change this trend.
I think its just a much needed pullback and retracement after an extremely insane pump, so were seeing plenty of pullback and consolidation on its own and then obviously negative news is the catalyst to have this price drive down even farther and faster, which does mean finding support And a floor typically faster and then likely in that instance, find some sort of bounce and then whether or not we actually establish a lower high higher low and go to consolidation pattern. Dont think thats really as likely right now, and especially with a lot of the sentiment and hype growing right now, with a lot of development and utilization with nfts and d5 projects. I do still think were extremely likely to see a lot of support coming in a little bit lower for solana and, like we said, pulling back and retracing to 38 fibonacci level is actually a pretty good sign and a really good target. So, finding a longer term support between the 140 and the 150 would actually be a really good scenario and target for me and, in addition, like we talked about in the last video that would allow this exponential moving average the 26 period exponential moving average to hopefully Roll up in that instance, and then see this daily, actually get a test and confirmation of this 26 period as support since up until now, it has just been this 12 period on the daily, so we did see it as support, support and support.
So now, since we have closed below it, or we are about seven minutes until we close below it, we are going to be invalidating the 12 period, ema as an indicator for support and then now, switching and looking at the 26 period pulling up some technicals right Now rsi, on top, you can see we have broken down below the 70 line, so we are seeing a lot of momentum and pressure from this rsi pushing to the downside back to normalized levels. In the last video two days ago, we talked about how the 70 was acting as support, and since we lost that, we know that a lot of downside pressure is going to be coming in, especially since we did find resistance up at the 90 line, which im Surprised we even got up that high, but yeah. Nonetheless, we do need this rsi to cool down, and i do expect it to probably return to about the 50 even slightly above. It does look like if we look left. We are looking at support coming in right about the 60 line or the 55. Rather so i do think that would be a nice place for this daily to return to consolidate a little bit farther and maybe not even necessarily seeing the price action drop. That much consolidate provide that point of accumulation and then in that instance, we could see a return to a nice directional pump and another move back to that 300 target indicator below that.
Macd lets actually switch these, so we did get a nice bearish cross on this macd parts of the histogram are rapidly approaching the zero line, and we have now gotten that first bar underneath the zero line on the histogram. So we are seeing a little bit more bearish pressure, just based on this macd on the daily chart, so make sure you go over here on twitter drop me a follow if you havent done so just yet have been posting a lot more about different projects and About different updates for various things and chart setups, and things like that, so definitely make sure you stop by join the family, join all the discussions and stay updated on all of the crypto content over there as well so yeah. We did ultimately end up closing below this ema. We did see a close. The ema was at 160 26 and we saw a close at 150 80.. So did barely break it and make this close. So now we will be looking at this 12 period, ema, providing that support level, and i do still think well probably get enough buying power coming in right around this 150 point which actually, as we do run up this 26 period, ema will be a very nice Support as well, so that is what im eyeballing and thinking as we do, a look at prices, seeing a downside, move and retracement, and then we are also hoping for good news and the network to actually get back online here.
I think that would create a nice little pump, but still i dont think it would probably be enough to push us back to see all time prices, but then also, i think, the longer the network outage does persist. The likelihood of testing some of these lower supports is just going to continue to increase so with that well, go ahead and wrap up. The show today on solana hope everyone enjoyed and found value from it. If you did, please hit that thumbs up like and subscribe button, if you havent done so just yet make sure to post your questions, comments predictions all that below love getting back to each and every one of you and having a great discussions with everybody that is Going to do it for now, though, so thanks again for all the continued love and support, as always means so much stay safe, take care everyone and ill catch.