Solana (SOL) stands out as one of the few altcoins outpacing Bitcoin’s (BTC) gains this week after rebounding back above the $100 level. The blockchain suffered an outage concerning investors earlier this week. However, negative sentiment fueled by uncertainty has given way to optimism as SOL reclaimed key technical support.
According to data analytics firm Santiment, Solana is up 4.5% against Bitcoin over the past 36 hours. SOL reclaimed the psychologically important $100 level after Monday’s network issues seemingly formed a temporary price bottom.
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Fears, uncertainty, and doubt triggered by the latest network disruption led to SOL selling. However, this knee-jerk reaction gave way to renewed buying interest as developers quickly restored full node functionality.
Bitcoin reclaims $44,500
Additionally, Bitcoin reclaiming $44,500 this week lent tailwinds to altcoins like SOL. Santiment data shows BTC wallet balances holding 1,000+ coins just reached a 14-month high, indicating accumulation by long-term investors. This optimism boosted Bitcoin and filtered down to Solana as infrastructure concerns faded.
Per CoinGecko, SOL gained over 6% in the last 24 hours and almost 8% over the past week. The quick recovery defied the most dire predictions as short-term traders capitalized on fear by buying Solana’s dip.
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For example, crypto forecasting platform Changelly set a February price target of $105 for SOL. Considering the coin currently trades near $101, Solana appears on track to hit that projection if the prevailing bullish momentum persists.
So while the latest outage set off some temporary turbulence this week, Solana continues to find its wings quickly thanks to swift repair efforts and lingering crypto market optimism in 2024.