• Solana price seems to be taking a hit as another exploit targets users’ wallets
  • SOL price looks likely to sweep the $42.43 level before taking a U-turn and potentially crashing 25%.
  • A sudden spike in buying pressure that pushes SOL to flip the $47.43 level into a support floor will invalidate the bearish thesis.

Solana price seems to have declined sharply on the reports that a hacker is draining wallets of SOL and SPL tokens. While unconfirmed, this hack seems to have an estimated loss of tokens worth $5 million. 

Solana exploit and what’s happening

Solana price took a hit after rumors of an exploit spread earlier today on August 3. According to unconfirmed reports on Twitter, users’ wallets are being targeted and drained of SOL and ETH. 

Additionally, a look into the Solana explorer shows that the attacker is stealing both SOL and Solana Program Library (SPL) tokens.

PeckShield, a well-known blockchain security and data analytics company, indicated users of Phantom, a popular Solana wallet provider, were affected by the exploit. The security firm further advised users to revoke permissions for any suspicious links to prevent the attacker from gaining access. However, the comment section of this tweet clearly stated that it was not a wallet-specific issue. 

Phantom issued a statement saying that they are,

working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem. At this time, the team does not believe this is a Phantom-specific issue.

As a result of this exploit, Solana price has crashed roughly 6% to $37 but buyers seem to be taking advantage of the discount and are scooping in SOL. 

Solana price and what’s next for SOL

Solana price took a hit due to the exploit and dropped only 6% and briefly sliced through the $38.22 support level. However, buyers seem to be buying SOL at a discounted price. 

Going forward, investors need to consider a reversal and a sweep of the $42.43 swing high and $44.37 intermediate resistance level if the bullish momentum continues to pile up. But market participants and SOL supporters need to understand that there is a lot of sell-side liquidity resting below the $31.62 support level.

The ongoing ‘exploit’ is not confirmed if it arises due to an inherent bug in the Solana blockchain or if it is a targeted phishing attack. Regardless, an escalation of the event could be a trigger that pushes SOL price lower.

Beyond this level, the swing lows formed between June 13 and June 19 also have between them a lot of sell-side liquidity, so market makers might push SOL down to $26 to collect it. During this move, Solana price might find solace in the $24.52 weekly support level.

SOL/USDT 4-hour chart

SOL/USDT 4-hour chart

On the other hand, if Solana price produces a daily candlestick close above the weekly resistance level at $47.43 and flip it into a support floor, the bearish thesis, at least from a technical perspective, will face invalidation

However, things could escalate if the ongoing exploit causes more losses to users.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP