Why SOL, DOT May Be At The Tail End Of The Downtrend

    • Solana temporarily patches the bug causing frequent network outages.
    • SOL might recoil to $100 following the return of institutional investors.
    • Polkadot presents a bullish picture after bouncing off the short-term support at $8.8.

    Solana and Polkadot are yet to escape the strong grip of sellers in the market. However, with a glance at the tokens’ technical pictures, it can be deduced that the downtrend is quickly being exhausted. As for DOT, support at $9 might present the escape route for a sustainable recovery. SOL, on the other hand, appeared technically poised to advance to $50, but for now, the biggest task is to close the day above $40.

    What Is Solana Doing To Curb Network Outages?

    Solana released a report on the beta protocol following a much-publicized network outage (the second one in less than a month). According to the blog post, “Solana’s Mainnet Beta cluster ceased producing blocks as a result of stalled consensus, caused by a bug in the durable nonce transactions feature.”

    Developers further outlined that “this led to nondeterminism when a validator processed the transaction a second time and some nodes rejected the subsequent block, while others accepted it.” To prevent the bug from reoccurring, Solana decided to disable “the durable nonce transaction feature” on the current protocol version as developers work on a permanent solution in the coming months.

    Solana’s history has earned it the moneymaker status, especially when it comes to institutional investors. The frequent network outages coupled with the bear trend in the market have, however, seen attention shift to other similar platforms like Cardano.

    Nonetheless, all is not lost for the token; particularly if the bug can be solved permanently. That leaves the possibility of SOL carving an impressive recovery and achieving record highs.

    Meanwhile, support at the descending channel’s lower boundary was required to hold to ensure that losses did not stretch to $35. On the upside, a break above $50 might set SOL up for a move to $100 while riding on a soon-to-be-sent TD Sequential buy signal.

    SOL/USD Weekly Chart

    Solana, Polkadot Poised For Volatility But Are Traders Aware?
    Tradingview chart: SOL/USD

    On the downside, investors should brace for $35 and $25 if the support is shattered.

    DOT Likely To Flip Bullish In The Short-term

    DOT plunged to $8.8 earlier this week following a failed attempt to break out of a descending parallel channel. In addition to that, the 50 Simple Moving Average (SMA and the 100 SMA cemented the bulls’ dominance in the market.

    However, the perspective may change drastically if DOT closed the day above the channel’s middle boundary. Moreover, the Moving Average Convergence Divergence (MACD) would boost the trend further out of the channel by flashing a buy signal.

    DOT/USD Four-Hour Chart

    Solana, Polkadot Poised For Volatility But Are Traders Aware?
    Tradingview chart: DOT/USD

    A glance above revealed possible delays at $10 and $12 levels, but if the bulls sail through, they could pave the way for significant gains to $16 and $20.

    John Isige
    John is a cryptocurrency technical analyst, who looks at micro, macro and fundamental factors affecting market trends.

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