On August 3, the price of SOL plummeted by nearly 8% because of a large vulnerability that caused many wallet addresses to be withdrawn. On the daily frame, SOL is forming a downtrend continuation wedge. If the pattern is completed, the SOL can be reduced by 30-50% from the current price.
The solana ecosystem is “unstable”
As reported by MarginATM (here), the incident began on the morning of August 3, Twitter account OtterSec – the moderator on Solana reported more than 5,000 Solana users’ wallets being withdrawn in the last few hours.
Regarding the cause of the incident, OtterSec said that these transactions were signed by the owner of the crypto wallet, suggesting a private key vulnerability.
However, this number has not stopped. More and more wallet addresses are netting assets. As of 5 p.m on the same day, according to data from Dune Analytics, there were nearly 8,000 Solana wallet addresses affected.
Anatoly Yakovenko – CEO of Solana Labs and Solana Status page shared on Twitter calling on users whose wallet addresses have been withdrawn to provide information for the investigation process.
Notably, this hack took place right before Solana’s 3 big events: Hackathon in Korea, Summer Camp online hackathon and Solana Breakingpoint in Lisbon.
In general, the tokens on the Solana ecosystem did not fluctuate greatly because of the above incident. SOL price in the past 1 hour has increased slightly again. However, in technical terms, SOL is located in the “dangerous” price zone and may drop sharply.
SOL price prediction
As CoinCodex predicts, the overall trend of SOL is down. In which, with 3 technical analysis indicators showing bullish signals and 27 bearish indicators.
According to prediction, Solana tends to rise to 46.13 USD in the next 5 days. And after 1 month, SOL will decrease to 37.36 USD.
Technical analysis
By the afternoon of August 8, Solana’s price moved at $39.25 with a 24-hour trading volume of $2.1 billion, down 1.83% in the past 24 hours. SOL ranks 9th on CoinMarketCap with a market cap of $13.6 billion.
After dropping more than 80% from ATH ($260), on the daily, SOL is moving within a rising wedge. This is a trend continuation (bearish) pattern. Therefore, if the pattern is completed, SOL can drop to the area of 28-20 USD.
According to the signal from the Ichimoku indicator, after touching the lead 1 (red), SOL has reversed to the downside and is moving in the red cloud. This zone acts as a moving support and resistance for the price. Therefore, the probability that SOL will continue to decrease is quite high.
Currently, SOL is still moving within 2 sides of the wedge pattern. Therefore, investors need to observe more in this area. If SOL breaks out of the lower edge, this pattern will be activated => SOL can drop to 2x USD. On the other hand, if SOL rises again as a breakout of the upper edge, the pattern will be invalidated.