Anza’s Update to Alleviate Congestion Issues Boosts Solana by 7%
Solana (SOL) has seen a 7% surge in the past 24 hours as it aims to recover from recent market declines. This comes alongside the release of a new update that aims to address the network’s congestion problems.
During the recent market downturn, Solana suffered significant losses, just like Bitcoin (BTC) which fell to $61,514. Along with the broader market, SOL dropped to a six-week low of $116 on April 13, marking a three-day losing streak.
Despite bouncing back from the $116 support level, Solana experienced a decline of over 21% from April 11 to 13, making it one of the most significant three-day losses of the year.
However, after this steep decline, the cryptocurrency began a recovery effort, taking advantage of Bitcoin’s rebound to regain the support levels it had lost.
Solana has maintained 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 and target the April 5 peak of $185.21, which aligns with Fib. 0.786.
Currently trading at $154.60, the altcoin is expected to face a significant challenge at the 50-day EMA of $160.67. A breakthrough above this indicator would indicate a shift in short-term momentum from bearish to bullish.
Solana is also working to resolve its unique congestion challenges as it continues its recovery. The increased trading of meme coins and growing adoption have led to increased network activity, resulting in congestion and occasional transaction failures.
Anza, a group of Solana developers, recently introduced a network upgrade, version 1.18.11, on the devnet. They urged validators to test its reliability on the testnet as one of the initial steps to tackle the congestion issues.
Most recently, Anza deployed version 1.17.31 on the mainnet, making it available for public use. They stated 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 managed to avoid significant downtime. The network only experienced a major outage on Feb. 6, which lasted for over four hours.
In conclusion, Solana is making strides in its recovery and is simultaneously working to resolve its congestion issues. With the release of new updates, the cryptocurrency aims to regain its lost support levels and strengthen its position in the market.
