Solana (SOL) Under Pressure: MEV Attacks, Price Dip, and Technical Concerns

Solana (SOL) is facing a double challenge: MEV attacks draining user funds and a price decline below a key support level.

MEV Sandwich Bots on the Prowl

A notorious MEV sandwich bot, “arsc,” has reportedly pilfered $30 million from Solana users in just two months. These bots exploit users’ transactions to manipulate prices and pocket profits.

Solana Still Tops NFT Charts (But for How Long?)

Despite the attacks, Solana maintains dominance in the NFT space, boasting the highest number of unique traders and NFT transactions last month. However, its monthly sales volume dropped significantly.

SOL Price Struggles to Regain Footing

Solana’s price recently dipped below the crucial $150 support level, sparking investor concern. The lack of a clear recovery pattern suggests a potential bearish trend.

SOL/USD: Technical Indicators Flash Red

• Moving Averages: Both the 50-day and 200-day moving averages are currently sloping downwards, indicating a downtrend in momentum. SOL needs to break above these averages for a bullish signal.
• Relative Strength Index (RSI): The RSI has dipped into the oversold territory (below 30), suggesting the price may be due for a correction. However, an oversold RSI doesn’t guarantee an immediate rebound.
• Moving Average Convergence Divergence (MACD): The MACD indicator has formed a bearish crossover, with the MACD line falling below the signal line. This further reinforces the bearish trend.

Potential for Rebound, But Challenges Remain

A price surge above $155 could revitalize the market and invalidate the downtrend. However, a decisive break below $135 might trigger a steeper fall towards $100.

Analyst Outlook: Neutral with Short-Term Weakness

Analysts predict short-term volatility for SOL. While an oversold RSI suggests a potential rebound, a decline in trading volume indicates waning investor interest.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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