But what's a good alternative then? What if the internet connection has recovered? And you were at the, for example, 4 minute retry loop. Would you just make your users stare at a spinning loader for 8 minutes?
Or tell them directly that "We have screwed up. The service is currently overloaded. Thank you for your patience. If you still haven't given up on us, try again a less busy time of day. We are very sorry."
There are several options, and finding the best one depends a bit on estimating the behaviour of your specific target audience.