Solana’s price is unstable due to a hack attack on withdrawals using external applications. About 8,000 wallets were hacked from Phantom and Solana, about $8 million was stolen from users. The price of the coin immediately fell to $40 with support at $35.
The Solana NFT marketplace, Magic Eden, has advised Phantom and Solana wallet users to revoke their permissions specified in the wallet app settings.
Luckily, funds were only leaked from some wallets, and the entire network was not at risk. Yesterday, when news of the exploit broke, trading volume was pitch red. In an instant, many users panicked and tried to transfer or sell their coins.
According to CoinMarketCap, at the time of this writing, the price of the cryptocurrency has increased by 3.07% or to $40.12.
Chart from TradingView.com
Solana RSI down 50 pips, bearish momentum in sight
The daily chart shows a cascading drop of 50 points in the RSI, indicating a bearish trend and an extensive correction.
The MACD also showed a bearish cross pattern that could see the SOL drop closer to $35 or even lower in the coming days.
The price of SOL is now on a bearish path and a break below the ascending triangle pattern is sure to confirm this. When this happens, SOL should be retested at $35. Due to the high volume of hits that SOL receives, recovery may take some time. On the other hand, crypto experts believe that the price of SOL could easily reach $50 by the end of the month.
At the time of this writing, the so-called Ethereum Killer has been able to gradually recover despite losses. Given the current momentum, SOL could top $40.
Social activity for SOL increased by 192%
Analysts were able to highlight five key metrics that could help with Solana’s comeback, including the spike in trading volume seen over the past 24 hours, as well as the boost in social media sentiment or Solana’s search volume on Google.
Social media mentions of SOL increased by 64%, and social media activity also increased by 191.7%, indicating an increase in investor interest in Solana.
Currently, the technical analysis of SOL shows the price growth and the positive mood of the market. Cryptocurrency analyst Aziz Mustafa looked at the SOL price charts and noticed that the bullish movement of the coin could drastically push the price of SOL from $70 to $80.
Similarly, @Pentosh1, a well-known crypto analyst, believes that the price of SOL could break through $42 and rise from $48 to $60.
SOL total market cap at $14 billion on the daily chart | Source: TradingView.com Featured image from FX Empire, Chart from TradingView.com
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