What to Know
- Solana has dropped nearly 6% to around $78, underperforming a weak crypto market.
- A $270M+ exploit has shaken investor confidence, triggering heavy selling.
- SOL is testing key support at $75-$80; a break lower could push it toward $67.
Solana (SOL) continued its downward move over the past 24 hours, falling nearly 6% to trade around $78-$79. The token is now underperforming a broader crypto market decline, raising concerns about whether more downside could follow in the near term.
Drift Exploit Shakes Confidence
One of the biggest reasons behind Solana’s sharp decline is a massive security incident involving a leading DeFi platform in its ecosystem. The exploit, estimated to be over $280 million, has shaken confidence among investors and users.
Following the incident, many users rushed to withdraw funds or reduce exposure to Solana-based platforms. This kind of reaction is common in crypto markets, where trust plays a huge role. When confidence drops, selling pressure increases quickly.
In a statement, the protocol confirmed the seriousness of the attack, saying, “a malicious actor gained unauthorized access… resulting in a rapid takeover of administrative powers.” The team also clarified that the issue was not due to a bug in smart contracts but involved a more complex setup using pre-approved transactions and social engineering. This has raised fresh concerns about security practices and how such large-scale incidents can still happen.
Market Weakness Adds to Pressure
At the same time, the broader crypto market is not providing any support. With risk sentiment turning negative, investors are moving money away from riskier assets.
According to CryptoNewsZ, Solana’s SOL token is down by more than 5.5% today, with the price hovering around the $78 mark. Over the past week, the token has dropped nearly 13%, making it one of the worst performers among major cryptocurrencies. Solana’s DEX volumes have gone down by 40% since January and these trends indicate that the momentum is fading and there is reduced capital rotation into the SOL’s ecosystem. The report highlights that investor confidence has been deeply affected after the recent exploit. At press time, SOL was trading near $78.89.
More Developments
Recent updates indicate that the exploiter has continued moving funds and has spent another ~2.46M $USDC to buy 1,195 ETH 2 hours ago, bringing total ETH bought to 130,262 ($266M).
ZachXBT revealed today in an X post that there was a critical lapse by Circle. As soon as the attack took place, more than $230 million in USDC were bridged from Solana to Ethereum via Circle’s Cross-Chain Transfer Protocol across 100+ transactions, while Circle had a 6-hour window to freeze funds following the exploit but they choose to remain silent.
Meanwhile, Ledger CTO Charles Guillemet noted that the attack appears to follow a pattern often linked to highly sophisticated groups. He described it as a “patient supply-chain-level compromise targeting human signers rather than smart contracts.”
Technical Levels
From a price perspective, Solana is now testing an important support zone between $75.85 and $80. This level is crucial in the short term. If SOL manages to hold above this range, the price could stabilize and attempt a recovery. However, if it breaks below this support, analysts warn that it could fall further toward the $67 range. The technical structure is weak, with price below all key moving averages and RSI at 34.55 indicating oversold conditions but not yet reversal.
Despite the negative sentiment, there is one positive development. The SUI token has recently gone live on Solana, allowing users to trade it against Solana-based assets. While this may not immediately impact price, it shows that development activity in the ecosystem continues.
Final Thoughts
Solana is currently facing strong bearish pressure due to a mix of internal and external factors. The recent exploit has damaged trust, while the broader market downturn has added fuel to the decline.
In the near term, everything depends on whether SOL can hold its key support levels. More importantly, recovery will likely depend on rebuilding investor confidence and improving security measures across the ecosystem.
Also Read: Pi Network Extends Losses as Liquidity Stays Weak
