It hasn’t been the best week for Solana (SOL) so far. On Tuesday evening, August 2nd, crypto wallets of several thousand Solana users were hacked. Immediately after this news, the price of the SOL token dropped by several percent. In addition to that, a report about the sharp decline in NFT trading volume added to investors’ worries. And all this is happening at a time when the crypto market is stagnating again. The Solana price fell to a low of $35.35. This is far below this month’s high of almost $50.
Read more about Solana’s price and find the latest business news with the Born2Invest mobile app.
Solana hack and its effects
Solana is considered one of the best alternatives to Ethereum. It is a well-funded platform that offers high-speed transactions and low fees. There can be over 2,500 transactions per second within the Solana blockchain, with the average price of the transaction being less than $1.
As a result, Solana has become very popular with both developers and users. Some of the most popular platforms built on Solana include StepN, Solend, and Magic Eden.
Solana’s price has faltered for several important reasons. Earlier this week, unknown individuals exploited a vulnerability that, so far, is believed to have originated from the Slope wallet, stealing money from thousands of users. In total, the hackers managed to empty accounts of more than 8,000 wallets. The damage is estimated at over $10 million at the moment.
The hacker attack brings back memories of regular network outages. This year, the Solana blockchain has already been offline several times, harming developers and investors. As a result, many potential developers have moved on to other alternatives such as Avalanche and Cronos.
The SOL price has also declined as investors are concerned about the continued weakness of NFT platforms on Solana. Data released this week showed that July sales volume was only $676 million, just over one-tenth of the $6 billion recorded in January.
There are also no signs that NFT trading volumes will pick up any time soon. For example, the main NFT marketplace on Solana, Magic Eden, recorded volumes of just $206 million, down from over $336 million in June. Analysts expect this trend to continue in the coming months as overall interest in NFTs declines.
Solana share price forecast
On the chart, it can be seen that the SOL price has been in a strong uptrend in recent days. Along the way, the coin formed a double top formation at around $46. In price action analysis, this pattern is usually a bearish sign.
Now, the 25 and 50-day moving average lines have also formed a clear bearish crossover, while the MACD has dipped slightly below the neutral point. So, the Solana price is likely to fall further as sellers target the lower side of the ascending trend line, shown in green. A break below this mark would mean that the sellers have finally gained the upper hand.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
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