Solana Price Forms Fresh Bear Cycle

The Solana price has formed a fresh bear cycle within a falling channel pattern, with a recent cyberattack on Drift Protocol leading to a loss of approximately $286 million in assets. Solana price forms fresh bear cycle as the seventh largest cryptocurrency by market capitalization slips over 3%.

Solana Price Analysis

The Solana price witnessed a sharp correction from $97.68 to $78.87, registering a loss of roughly 20%. This reversal emerged precisely at the resistance trendline of a falling channel pattern in the daily chart. The 20-and-50-day exponential moving average acts as stable dynamic resistance against SOL.

Impact of Drift Protocol Hack

Security Breach

The hackers associated with North Korea stole $286 million from Drift Protocol, a decentralized trading application on Solana. The group generated artificial trading to inflate the collateral values, and then emptied the main storage accounts with stolen administrative access code. The complete withdrawal was in 12 minutes.

The abrupt departure of SOL tokens and JLP positions out of Drift holding reduced the value of the protocol assets by half. This influx of sales put Solana under significant downward pressure on its market price. Within hours, the combined locked value of all Solana projects dropped to $5.93 billion, representing a 18.32% drop compared to the high of $7.26 billion in mid-March.

Market Outlook

The Solana price challenges the support trendline at $76.77. If the selling pressure persists, the coin price could plunge to $64.5, followed by $51.5. The momentum indicator RSI at 37% signals that sellers remain the dominant player in current price action.

Key Takeaways

• Solana price forms fresh bear cycle within a falling channel pattern.
• The recent cyberattack on Drift Protocol led to a loss of approximately $286 million in assets.
• The combined locked value of all Solana projects dropped to $5.93 billion, representing an 18.32% drop.
• The Solana price could plunge to $64.5 or $51.5 if selling pressure persists.

Frequently Asked Questions

What is the current Solana price?

The current Solana price is $78.24, with a market capitalization of over $27 billion.

What is the impact of the Drift Protocol hack on Solana?

The Drift Protocol hack led to a loss of approximately $286 million in assets and put Solana under significant downward pressure on its market price.