Bitcoin

What is causing the increase in Solana (SOL) price today?

NOIDA (CoinChapter.com)—Solana’s price on April 14 spiked suddenly, leaving many to question why SOL’s price was up. The successful rollout of crucial software updates targeting long-standing network congestion issues likely helped the bullrun.

The newly released version 1.17.31, now recommended for general deployment across MainnetBeta validators, sparked optimism in the investing community.

Upcoming Update Might Be Solana Price Was Up

The updates, particularly version 1.17.31, include strategic enhancements aimed at smoothing out the transactional flow. Solana has had a bad history with network congestion, which has usually brought the blockchain to a standstill.

The Solana developers have improved the network’s robustness to the point that the blockchain suffered an outage only once in more than a year.

The recent memecoin frenzy aggravated Solana’s congestion issues, pushing daily volumes as high as $4 billion in March, up from typical figures of under $500 million in previous months.

Solana announced the release of its update.

Furthermore, the congestion not only slowed transaction processing but also led to a high rate of failed transactions, further straining the network.

The upcoming update prioritizes transactions from validators holding more substantial stakes. As such, the latest Solana update promises a higher quality of service and reduces the likelihood of spam or malicious floods of transactions.

Additionally, the ongoing testing of the subsequent version, 1.18, on a testnet underscores Solana’s proactive stance on network improvements.

Declined transactions might not be what they seem.

Meanwhile, Mert from Helius.dev clarified that “failed” transactions on Solana, often viewed negatively, actually indicate that the blockchain’s smart contracts are functioning correctly by rejecting invalid requests, not that the network is down.

Mert distinguished these from transactions dropped due to network congestion, which the upcoming update is addressing to improve user experience and system throughput.

SOL Price Drops After Brief Recovery

SOL price dropped over 13% on April 15 as the rally from the news of the latest Solana update failed to restart Solana’s uptrend. Bulls are ensuring that SOL price holds above the 100-day EMA (blue wave) dynamic resistance.

However, if the Solana token fails to launch a rally, SOL price could drop to the support near $130. Moreover, breaching the immediate support might result in the token dropping to the 0.236 FIB support level near $113 before recovering.

SOLUSD daily price chart with RSI.

On the other hand, an uptrend from here might help SOL price to rally to the resistance near $157. Breaking and consolidating above the immediate resistance might help the Solana token price target the resistance near $176 before paring gains.

Thre RSI for SOL remained neutral, with a score of 34.91 on the daily charts.





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