Double-Peak Formation Points to a Drop in Solana’s Share Price
Aug 5, 2022
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. __
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