Solana (SOL) collapses below $100... $2.5 million hacked from ecosystem protocol

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Solana (SOL) fell below $100 in the aftermath of a $2.5 million hack that occurred in a core ecosystem protocol. Short-term indicators have entered an oversold zone, but there is a prospect that the decline could deepen further if even $98.50 collapses.

According to CoinMarketCap, a cryptocurrency market data aggregator, on September 2 (local time), Solana recorded $99.73, down 3.19% over the past 24 hours. During the same period, the total virtual asset market capitalization decreased by 1.44%, and Bitcoin (BTC) decreased by 1.49%, indicating that Solana's decline significantly exceeded the market average.

The direct negative factor was a $2.5 million hack that occurred in Aquifer, a Solana-based automated market maker (AMM). It was identified that the attackers stole funds using controlled wallets on Solana and Ethereum (ETH). Aquifer offered a 20% white hat bounty if the stolen funds were returned by September 3, but the security incident undermined trust in the overall ecosystem, leading to defensive selling pressure.

The accompanying weakness in the Layer 1 sector also amplified the decline. While the overall virtual asset market retreated, Layer 1 related assets fell by 1.83%. Solana's more than double decline compared to Bitcoin is analyzed as a result of the Aquifer hack, an individual negative factor, being added to the overall risk-off sentiment in the market.

Technically, the 78.6% Fibonacci retracement level of $99.87 and the $99-$100 range are key support levels. The recent low is $98.52, and if the price falls below this, selling pressure could further expand. On the other hand, the Relative Strength Index (RSI) is 29.33, entering an oversold zone, suggesting a possibility of a short-term rebound if market sentiment stabilizes. To confirm a recovery in buying interest, the price needs to break above the 50% Fibonacci retracement level of $101.67 again.

The short-term outlook leans bearish. If Solana maintains the $99-$100 range, the price could stabilize, but if it definitively breaks below $98.50, the downtrend is likely to extend. Market attention is focused on Aquifer's bounty offer deadline scheduled for September 3. If the attacker accepts the offer and returns the funds, some selling pressure could ease, but if the situation is not resolved, on-chain security concerns are expected to continue to pressure the price.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*