Drift Exploit and Whale Capitulation Send Solana Plunging
The crypto market is going through a turbulent phase, and Solana is caught on the front lines. Currently trading in a range between $77.40 and $80.00 (down roughly 5% over 24 hours), SOL is facing intense selling pressure. The trigger? Alongside the drop in Bitcoin, Solana suffered a devastating exploit on the Drift Protocol, one of the flagship DEXs in the ecosystem, resulting in a loss of over $280 million.
This security breach has sparked widespread panic among investors. On-chain data reveals a massive whale capitulation, with one whale liquidating over 47,000 SOL at a loss. This sudden withdrawal, coupled with a market heavily loaded with long positions, triggered a cascade of liquidations that dragged the token below the critical $80 mark.
Technical Analysis: $80 Support Breaks, Is $60 Next?
From a technical analysis standpoint, Solana’s setup remains bearish. SOL recently confirmed a downside breakout from its bearish pennant, signaling a continuation of the correction. The $78.50 level, which served as the last short term line of defense, is now under critical pressure from sellers.
Despite this, the 6-hour RSI and the CVD are both printing bullish divergences, and a bullish order block with a significant liquidity zone at $73 could act as catalysts for a short term bounce. Furthermore, SOL is now sitting at the bottom of its range. A rebound toward $92-$97 in the coming weeks is likely if the $73 level holds and $77 is maintained as support. This $77 mark will be crucial, especially for weekly closes.
Indicators confirm this momentum: the stochastic RSI is plunging deep into oversold territory, reflecting relentless selling pressure. If buyers fail to regain control and push back above the immediate resistance at $84, the risk of a deeper retracement is imminent. A definitive loss of the $77 zone would pave the way down to the next major liquidity support, located around $60.
How Far Can the Price of Solana (SOL) Go?
The market is currently at a major inflection point. In a bearish scenario, SOL’s inability to absorb the current selling pressure could send it crashing toward the $60 demand zone. This key level represents an opportunity where institutional buyers might attempt to accumulate again, but it would be a painful flush out for overleveraged traders.
The liquidation heatmap shows that liquidity is primarily building up to the upside, with significant short clusters between $80 and $82 and around $97 and $107. In the short term, we could therefore see a bounce toward $82 before or during the weekend.
However, it is important to remain cautious and take profits if this scenario plays out, as weekends and early Saturdays are typically volatile and bearish.
To hope for a more sustained bullish rally, Solana must imperatively reclaim $80 and then break through the $85 resistance. Such a rebound would require a positive reversal in the overall crypto market sentiment. The coming days will be decisive in determining whether SOL has hit a local bottom or if the drop is just beginning.
For now, all signs point to a short term bounce toward $82-$83 in the coming hours. It remains to be seen whether Bitcoin will manage to hold the $63,000 level over the next few days.
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