YEREVAN (CoinChapter.com) — Solana (SOL) price is back above the $100 mark, outperforming market leader Bitcoin (BTC) in the process. The token shed some of its price on Feb. 6 following the sudden outage on the network. However, since then, it has slowly recovered, with the SOL price reaching $102 earlier today.
As market intelligence platform Santiment noted in a post on X (formerly Twitter), over the past 36 hours, Solana has gained over 4% against Bitcoin.
Here are a few things that could have factored in the recent surge in Solana’s price.
Resolution to Solana Outage Renews SOL Price Rally
As stated above, although the recent outage initially concerned traders, quickly resolving these issues could have restored investor confidence in the platform’s reliability and scalability.
Earlier, Solana had received a lot of flak and lost its reputation in the market owing to repeated outages. However, since then, the network has improved substantially. The frequency of such outages has dropped.
Moreover, quickly resolving technical problems demonstrates the project’s capability to handle challenges. This has reassured investors and users about its stability and operational efficiency.
Increased Adoption and Positive Sentiment
Another reason for the surge in SOL price could be increased adoption or positive news surrounding Solana. This includes new partnerships, integration into popular services, or announcements of upcoming updates that promise to enhance the network’s capabilities.
Recently, the Abu Dhabi Global Market (ADGM), a prominent International Financial Centre (IFC), revealed it had signed a Memorandum of Understanding (MOU) with the Solana Foundation. The new partnership will help bolster Distributed Ledger Technology (DLT) solutions and advance blockchain innovation.
Lily Liu, the President of the Solana Foundation, also shared the news on X.
Positive developments like these usually lead to heightened investor sentiment and increased demand for SOL, pushing its price upwards.
As a result, the Fear, Uncertainty, and Doubt (FUD) mentioned could have been overshadowed by positive news or broader adoption trends, contributing to the rebound.
Are Traders Buying the SOL Price Dip?
Thanks to the speculative nature of the cryptocurrency market, some savvy traders look to reap gains from altcoins.
While the FUD following the outage pushed the Solana price down, speculators quickly jumped in to buy the dip, betting on a quick recovery.
While the SOL price could still fall, with short traders drawing profits from the recent surge, it seems to have overcome the FUD. With Solana trading above the $100 mark, it will serve as a huge psychological boost to traders looking to maximize profits from altcoins.
At the time of writing, Solana’s price trades at $101.84. This marks a 7% surge in the past 24 hours. However, the popular altcoin remains over 60% below its all-time high of $259.96 on Nov. 7, 2021.
