In an effort to recoup from recent market setbacks, Solana (SOL) has seen a noteworthy spike of 7% in the last day. This coincides with the release of a new upgrade aimed at reducing network congestion.
Solana suffered significant losses during the most recent market downturn, which was similar to Bitcoin’s decline to $61,514. SOL began a three-day declining trend on April 13 when it fell to a six-week low of $116, along with the rest of the market.
Solana saw one of its highest three-day losses of the year from April 11 to 13, falling more than 21% even though it recovered from the $116 support level.
But in reaction to this sharp fall, the cryptocurrency launched a recovery drive, using Bitcoin’s comeback to reclaim support levels that had been lost.
Solana’s Recovery And Congestion Solutions
As of right now, Solana is moving upward, with the goal of holding onto and recovering the Fibonacci 0.5 level at $159.91. Breaking through this barrier and taking back $170.35 would strengthen SOL’s position in order to go for the peak of $185.21 on April 5, which corresponds with Fib. 0.786.
The altcoin has a significant obstacle at the 50-day EMA of $160.67, with its current trading price of $154.60. A move above this signal would indicate a negative to positive change in the short-term momentum.
While Solana continues its road to recovery, initiatives are underway to address its unique traffic problems. Increased adoption and a spike in meme currency trade have raised network activity, which has resulted in congestion and intermittent transaction failures.
A group of Solana engineers called Anza just released version 1.18.11 of the network update on the devnet and asked testers to evaluate its dependability on the testnet. This was one of the first actions made to address the problem of congestion.
The most recent announcement from Anza stressed that version 1.17.31 is now live on the mainnet and is accessible to the whole public. They affirmed that the update contains improvements meant to address current congestion problems until version 1.18 is formally released on the mainnet.
It is interesting that Solana has minimized substantial downtime in spite of continuous congestion issues. On February 6, the network went down for more than four hours, the only significant outage of the year.
