Cannot Send Email Through Squirrel Mail

I have a dedicated server with godaddy and it has squirrel mail/sendmail/dovecot etc installed on it. I am able to log-in to squirrel mail but when I try to send email, it fails. Even it's not able to receive email. I restarted sendmail but it still does not works.

I tried to send email through command line but it does not work either.

[root@ip-xx-xxx-xxx-xxx public_html]# /usr/lib/sendmail -v myemail@hotmail.com < /home/mysite/public_html/license.txt
myemail@hotmail.com... Connecting to [127.0.0.1] via relay...
220 ip-xx-xxx-xxx-xxx.ip.secureserver.net ESMTP Sendmail 8.13.1/8.13.1; Sun, 27 Jul 2008 09:21:09 -0700
>>> EHLO ip-xx-xxx-xxx-xxx.ip.secureserver.net
250-ip-xx-xxx-xxx-xxx.ip.secureserver.net Hello ip-xx-xxx-xxx-xxx.ip.secureserver.net [127.0.0.1], pleased to meet you
250-ENHANCEDSTATUSCODES
250-PIPELINING
250-8BITMIME
250-SIZE
250-DSN
250-ETRN
250-AUTH DIGEST-MD5 CRAM-MD5
250-DELIVERBY
250 HELP
>>> MAIL From:<root@ip-xx-xxx-xxx-xxx.ip.secureserver.net> SIZE=15127 AUTH=root@ip-xx-xxx-xxx-xxx.ip.secureserver.net
250 2.1.0 <root@ip-xx-xxx-xxx-xxx.ip.secureserver.net>... Sender ok
>>> RCPT To:<myemail@hotmail.com>
>>> DATA
250 2.1.5 <myemail@hotmail.com>... Recipient ok
354 Enter mail, end with "." on a line by itself
>>> .
250 2.0.0 m6RGL99A018025 Message accepted for delivery
myemail@hotmail.com... Sent (m6RGL99A018025 Message accepted for delivery)
Closing connection to [127.0.0.1]
>>> QUIT
221 2.0.0 ip-xx-xxx-xxx-xxx.ip.secureserver.net closing connection
[root@ip-xx-xxx-xxx-xxx public_html]#