Solana (SOL) price extended its slide on Sept. 17 equally a major network outage over the past week — pointing to heightened security risks — hit traders' confidence.

The SOL/USD substitution rate fell upwards to 13.27% to its intraday low of $133.53 in a cosmetic trend that began afterwards it topped out near $221.38 on Sept 9. As a outcome, SOL'south price has crashed by almost xl% since its best loftier concluding week, despite more than tripling its value in the by thirty days.

Outage hurts SOL price

Solana backers tout its layer-1 blockchain solutions as a directly competitor to Ethereum. That is mainly due to its potential to ensure higher speed and lower transactions costs than the world'southward leading smart contracts platform.

Even so, on Sept. 14, Solana suffered a denial-of-service disruption, wherein a fasten in transaction load — of up to 400,000 per second — overwhelmed its network. As a issue, Solana's mainnet beta suffered 18-hours of instability, forcing decentralized applications (dApps) working atop its blockchain to become unusable.

The root cause of the effect was reportedly a decentralized substitution, Raydium. On it, bots attempted to purchase SOL tokens and, as a issue, flooded the network with up to 400,000 transactions per second. On the other hand, Solana validators failed to prioritize transactions, causing a concatenation divide.

SOL/USD rates brutal up to nineteen.17% to $137.15 on Sept. 14, only to rebound sharply subsequently to close the day at a 6.47% loss. Nonetheless, the sell-off connected in the next sessions, driven by fears that Solana is more than centralized than its superlative rival Ethereum.

Gavin Wood, the co-founder of Ethereum and another rival blockchain network Polkadot, pointed out that Solana functions with an "exclusive and closed prepare of servers," which somewhat increases its network's speed but comes at the cost of lower decentralization.

The comments appeared as Ethereum successfully withstood against the same attack.

In a tweet issued on Sept. sixteen, Solana promised to take more than proactive steps against potential hacking attempts. The foundation as well appear that it would publish a "detailed mail service-mortem" assay in the coming weeks.

Bull flag

SOL/USD expects to resume its prevailing bullish momentum despite the toll correction as it paints a classic technical construction with an upside outlook.

Related: BTC takes aim at $50K; Solana goes down; Is ETH 'sound money'? | Lookout man The Market Report westward/ Charlie Burton

Dubbed a "bull flag," the pattern forms when the price consolidates lower in a descending channel (flag) following a stiff move upward (flagpole). Ultimately, the price breaks above the channel's upper trendline, typically rising by as much as the Flagpole's height.

SOL/USD iv-hr price chart featuring bull flag pattern. Source: TradingView

Solana's recent cost action has led it to form a like bull flag blueprint. As a result, its next endeavor to pause above the channel's upper trendline could lead its cost equally high every bit the flagpole's meridian, which comes to be around $107.

Every bit a result, SOL/USD could accomplish $250.

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