The cryptocurrency market was underperforming for the second day in a row this week.
The cryptocurrency market has had a poor performance over the past 24 hours. During this period, the market value has shrunk by nearly 5%, and the total market capitalization is now below $1.3 trillion.
Bitcoin’s price remains above $30,000 despite a 4.5% drop over the past 24 hours. Ether is trading below $1,900 again, down 7% in the past few hours.
SOL, the native token of the Solana ecosystem, is the worst performer among the top 10 cryptocurrencies by market cap today. SOL is down 10% in the past 24 hours.
SOL has been underperforming since the Solana network went down yesterday. Solana’s validators have been unable to process new blocks for the past five hours, causing all Solana applications to shut down completely.
Block production on Solana Mainnet Beta has stopped. Validator operators should be prepared to restart in mb-validators on Discord. https://t.co/gRJJRqEMPn
— Solana Status (@SolanaStatus) June 1, 2022
The downtime was caused by a bug affecting how the Solana blockchain handles niche-type transactions designed for offline use cases. The Solana network has recorded several outages over the past year.
Key Levels to Watch
The 4-hour chart of SOL/USD is bearish as Solana has been underperforming over the past few days. Technical indicators show that Solana is currently in a bearish momentum.
The MACD line is below the neutral zone, indicating underperformance. The 14-day RSI of 38 indicates that Solana is currently oversold.
At press time, SOL is trading at $40.9 per coin. If bearish sentiment intensifies, the SOL could break below the first major resistance level at $37 before the day’s close.
A prolonged period of negative performance could send Solana below the $35 mark for the first time this year.