3 years ago
The bearish continuation setup could propulsion Solana terms dropping to astir $50 successful the sessions ahead.
Solana (SOL) became 1 of the worst performers among the apical cryptocurrencies connected Feb. 3 arsenic traders assessed its links with the second-biggest hack to date.
$325M worthy of wETH gone
SOL terms dropped by 5.50% to beneath $96.50 arsenic Wormhole, a span betwixt Solana and Ethereum blockchains, reportedly mislaid $325 million worthy of Wrapped Ethereum (wETH) owed to a method vulnerability.
Prior to the hack connected Wednesday, SOL was trading arsenic precocious arsenic $112.
Solana information spread needs fixing asap?
Seems their statement proceeds with lone 33% of the nodes
Hard mathematics proofs amusement you request 66%+ for safety. No ifs nary buts
Possibilities: 1) is insecure, 2) is centralized, oregon 3) they've breached Computer Science (unlikely) pic.twitter.com/yqfW3QnfeK
In detail, hackers tricked a bid of Solana's astute contracts into signing illicit transactions digitally posing arsenic "guardians," reported blockchain researcher Kelvin Fichter Wednesday nighttime aft the hack. He wrote:
"The attacker made it look similar the guardians had signed disconnected connected a 120k deposit into Wormhole connected Solana, adjacent though they hadn't. All the attacker needed to bash present was to marque their "play" wealth existent by withdrawing it backmost to Ethereum."And 1 withdrawal of 80k ETH + 10k ETH aboriginal (everything successful the span connected Ethereum), everything was gone.
— smartcontracts (@kelvinfichter) February 3, 2022Wormhole said that it would adhd Ethereum's autochthonal token Ether (ETH) "over the adjacent hours" to backmost wETH connected the Solana web connected a 1:1 basis. However, the task did not clarify the root of the funds that would beryllium utilized to bargain ETH tokens.
Bear emblem triggered
The selloff successful the Solana marketplace crossed the past 24 hours came person to triggering a bearish continuation setup that whitethorn nonstop the SOL terms down by different 50%.
Dubbed "bear flag," the signifier emerges erstwhile the terms consolidates sideways/higher aft a beardown downside move, called "flagpole." In a cleanable world, the terms yet breaks beneath the consolidation scope and falls by arsenic overmuch arsenic the flagpole's length.
So far, SOL/USD has been forming the aforesaid carnivore emblem pattern, arsenic shown successful the illustration below.
SOL/USD regular terms illustration featuring carnivore emblem setup. Source: TradingViewThe downside people enactment distant by Solana's carnivore emblem sits adjacent $50, astir halfway down wherever the SOL terms has been trading connected Thursday.
Related: Report crowns Solana for utilizing slightest vigor per transaction, but there's a catch
Last year, Solana sprinted into the top-ten cryptocurrencies by marketplace headdress with SOL rising by much than 11,000% arsenic investors stake connected the maturation of decentralized concern (DeFi) and nonfungible token (NFT) sectors.
However, entering 2022, the SOL terms has fallen sharply, wiping astir fractional Solana's marketplace capitalization amid a broader crypto marketplace diminution — that besides battered Bitcoin (BTC), Ether, and different top-ranking integer assets.
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