- Solana Price seems to be taking a hit as another exploit targets users’ wallets
- SOL price is likely to rise above the $42.43 level before taking a U-turn and a 25% crash.
- A sudden rise in buying pressure pushing the SOL to turn the $47.43 level into a support floor invalidates the bearish thesis.
Solana price has fallen sharply on reports that a hacker is emptying the wallets of SOL and SPL tokens. Although unconfirmed, the hack appears to have caused an estimated loss of $5 million worth of tokens.
The Solana Exploitation and What Happened
Solana Price took a hit after rumors of exploitation spread today, August 3. According to unconfirmed reports on Twitter, users’ wallets are being targeted and drained of SOL and ETH.
If you’re a developer, help try to figure out if this ongoing Ethereum/Solana wallet drain exploit is a supply chain issue.
— Steven Luscher (@steveluscher) August 3, 2022
Additionally, a look into Solana Explorer shows that the attacker is stealing SOL and Solana Program Library (SPL) tokens.
PeckShield, a well-known blockchain security and data analytics company, has indicated that users of the popular Solana wallet provider Phantom have been affected by the exploit. Security agency further Advised Users to revoke permissions to any suspicious links to prevent attackers from gaining access. However, the comment section of this tweet clearly stated that this is not a wallet-specific issue.
Solana is working closely with other teams to get to the bottom of reported vulnerabilities in the ecosystem. At this time, the team does not believe this is a Phantom-specific issue.
As a result of this exploitation, Solana prices have fallen approximately 6% to $37 while buyers are taking advantage of the discount and scooping up SOL.
Solana price and what’s next for SOL
Solana price took a hit due to the exploit and fell just over 6% and briefly cut through the $38.22 support level. However, buyers seem to be buying SOL at discounted rates.
Going forward, investors should consider a reversal and sweep of the $42.43 swing high and $44.37 intermediate resistance level if bullish momentum continues to pile up. But market participants and SOL supporters should understand that sell-side liquidity remains below the $31.62 support level.
The ongoing ‘exploit’ has not been confirmed if it is due to an inherent flaw in the Solana blockchain or if it arises from a targeted phishing attack. Regardless, an escalation of the event could be a trigger that lowers the SOL price.
Beyond this level, the swing lows formed between June 13 and June 19 have plenty of sell-side liquidity between them, so market makers can push the SOL to $26 to collect it. During this move, Solana price may find solace at the $24.52 weekly support level.
SOL/USDT 4-Hour Chart
On the other hand, if Solana price produces a daily candlestick above the weekly resistance level of $47.43 and turns it to a support floor, the bearish thesis will face invalidation, at least from a technical perspective.
However, things can escalate if the ongoing exploitation causes more losses to the users.