Solana Price Prediction: Recent Recovery and Network Updates Fuel Optimism for SOL's Future

Solana experienced a notable rebound in its price on Monday, bouncing back from a recent decline. This resurgence was fueled by positive developments in the Bitcoin and Ethereum markets, as well as the approval of ETFs for both cryptocurrencies in Hong Kong. Additionally, Solana addressed ongoing network congestion issues with a new update aimed at rectifying transaction failures and outages.

Addressing Network Congestion: Insights from Experts

According to Mert Mumtaz, CEO of Helius Labs, Solana's recent network congestion issues stem from an implementation bug rather than a fundamental design flaw. This clarification highlights the importance of identifying and resolving technical issues promptly. Anza, a spin-off of Solana Labs, announced the release of a new update, v1.17.31, designed to mitigate network congestion and improve overall performance. Validators were encouraged to adopt the update promptly to enhance network efficiency.

The Road to Recovery: Impact on Solana's Price

Following the unveiling of network updates, Solana's price surged by over 7%, signaling renewed investor confidence. This positive momentum helped offset recent losses, contributing to a more bullish outlook for SOL's future. Moreover, regulatory approvals for spot Bitcoin and Ethereum ETFs in Hong Kong further boosted market sentiment, leading to uptrends across the top 10 cryptocurrencies.

Looking Ahead: Key Price Levels and Potential Challenges

Despite the recent price surge, SOL's trading volume has decreased, indicating a temporary decline in market activity. However, Solana's current trading price of $151.40 suggests potential for further gains. Overcoming the $151.40 mark could pave the way for SOL to test resistance at $170, signaling a recovery from recent losses. On the downside, the $130 level remains a strong support level, providing a foundation for SOL's bullish momentum.