With the weekend approaching, traders are hoping that the bearish episode of the last few days will be quickly forgotten. In just one day, the overall cryptocurrency market lost more than 11% of its total capitalization, and the major coins in the ecosystem bled painfully.
But not Solana.
Despite the struggles that most crypto projects face right now, Solana keeps growing and growing, taking everything that stands in its way.
According to data from Coingecko, the promising blockchain has recorded the best price performance of the top 10 cryptocurrencies over the past 7 days, increasing its valuation by 86.9%.
This is enough for SOL, Solana’s token, to overtake XRP in the cryptocurrency ranking and claim the #6 spot on the list for the first time.ADVERTISEMENT
Solana: To The Moon And Beyond
Looking at the charts, Solana’s price is outperforming all expectations. Its rise is almost parabolic and with increasingly larger weekly candlesticks since the beginning of August.
The most recent weekly candle (currently in formation) shows a rise of almost 48%. SOL started the week at $141, and right now, its price is already above $208.
Naturally, indicators show that the token has reached the highest overbought point in its entire history, so caution is advised in case of pursuing a long position. For now, strength indicators such as the ADX show that the token is very, very bullish.
For its part, XRP has not performed well this week. In addition to moving under Bitcoin’s direction, the legal troubles have not played much in its favor.
On September 7, 2021, XRP had its worst price drop since May. It lost more than 18% of its price, going from $1.38 to $1.12. The following days were also bearish, and currently, each XRP is trading on the order of one dollar per coin.
This crash contributed to the change of positions in the ranking of cryptocurrencies.
Fundamentals Are Strong
Just last week, Solana was able to flip Dogecoin, which was already meritorious considering it is a young project that only reached the Top 10 last month.
Strengthening its position above XRP is a significant milestone for Solana. The accelerated rise reflects the optimism of speculators and investors who are confident in a sustained appreciation of the token.
But the rise also shows the blockchain’s excellent fundamentals. It is currently gaining popularity among top dApp developers for its high efficiency and scalability. NFT collections like Degenerate Ape Academy chose the blockchain over older competitors such as Ethereum. Also, the Total Volume Locked on DeFi platforms running on Solana exceeds $7.5B.
And because of its high processing power and minimal fees compared to its competitors, Solana is earning the title of Ethereum Killer on its own merit.
$2.6 Billion Bug in Solana Program Library Disclosed: Details
Researchers from Neodyme, a boutique team focused on security audits, noticed a critical vulnerability in Solana’s codebase
In their latest blog post, crypto security researchers from Neodyme shared the design of an attack that may be profitable for “expensive” tokens integrated into Solana (SOL) ecosystem.
“One Lambo per hour”
As per the announcement shared in Neodyme’s social network and blog, its members noticed a bug in the token-lending contract of the Solana Program Library. As such, it affected numerous Solana-based DeFi protocols.
We recently discovered a critical bug in the token-lending contract of the solana-program-library (SPL). This blog post details our journey from discovery, through exploitation and coordinated disclosure, and finally the fix.— Neodyme (@Neodyme) December 3, 2021
Aggregated total value locked (TVL) at risk was over $2,600,000,000. The design of the hypothetical attack was quite simple: while depositing n fractional tokens, a user is able to withdraw n+1 fractional tokens.
With Solana’s native token, SOL, it will not be effective economically, as 1 Lamport (the smallest fraction of SOL, like Satoshi for Bitcoin, Wei for Ether and Drop for XRP) is only worth about $0.000000220.
However, for Ether and Bitcoin, this scenario can be very profitable. With some technical upgrades, the attack can be executed about 300 times per second. In this case, losses can be dramatic:
We can get this transaction included about 300 times per second, stealing $7500 per second or about $27 million an hour (that is one Lamborghini Huracan every minute).
In automated mode, this attack becomes profitable even for FTT and RAY tokens.
On Dec. 2-4, Neodyme’s representatives contacted a number of decentralized finance protocols (DeFis) on Solana, e.g., Larix, Solend, Tulip, Accumen, Soda and so on.
All teams fixed the bugs in their architecture. Yesterday, software engineer Jordan Audet-Sexton shared in GitHub that the issue is fixed in Solana’s main codebase as well.
Here’s What’s Next for Ethereum Rivals Solana and Avalanche, According to Analyst Nicholas Merten
Prominent crypto analyst Nicholas Merten is taking a look at two layer-1 digital assets stacked up against the Ethereum (ETH) trading pair.
In a new strategy session, the host of DataDash tells his 486,000 YouTube subscribers where he thinks smart contract platforms Avalanche (AVAX) and Solana (SOL) are headed.
According to Merten, it is better to compare both coins to ETH rather than the US dollar or Bitcoin (BTC) as Ethereum’s greater success in recent years makes it a better barometer than Bitcoin.
“If you’re really looking to see if your play is outpacing others in the market, you want to take a look against Ethereum. It is the second-largest cryptocurrency in this space and it has been outpacing Bitcoin around 380% to 400% in this cycle alone since 2019.
So we want to be able to find plays that are outpacing Ethereum because Ethereum is a really solid bet. It’s a really good medium-risk, medium-reward play.”
Looking at Avalanche, Merten says that a local top might be in for the AVAX against ETH after the altcoin’s massive rally in the last few months.
“Avalanche has done phenomenally well against Ethereum. If you take a look back here since August, it’s up 422% against Ethereum. Great rally, even after the [recent] pullback here…
When I look at this chart I definitely like seeing an asset that performs well against Ethereum, but each time it’s come up to this range [0.034 ETH or $139.21] historically, it’s been dragged down…
I think that again we might see some kind of repetition, or at least a revisit down to the previous support range [0.014 ETH or $57.32], which means that’s it probably going to go down a little over 35% to 40% against Ethereum. A pretty decent decline.
At time of writing, AVAX is down 1% on the day to $107.20.
As for Solana’s price action against Ethereum, Merten notes that the pair is flashing a bearish pattern after printing massive rallies in the last 18 months.
“But to be completely frank as a trader, Solana’s had many rallies in the past. It’s had one back here [from July to August of 2020], 336% rally in price. Then back here [December of 2020], if you want to take from the lows, in this case, 1,000% move, massive multiples in price.
We take a look here as well, from the recent rally here [August 2021] into September, very similar to history, a little over 350% to 400%. Not a bad rally.
But to be completely frank, we’ve been stagnant since September generally. The trend is starting to fade here. We don’t have that same momentum, and it’s seeing if it can hold out against Ethereum.
If you break below this range here [0.046 ETH or $188], I think it’s very favorable that Ethereum is going to start to outpace Solana as well as other major layer-1 plays.”
Solana is currently down nearly 10% and trading at $203.79.
Solana Price Analysis: SOL spikes to $170, swift retracement to follow?
- Solana price analysis is bullish today.
- Rejection was seen at $170.
- SOL/USD set to retrace previous loss next.
Solana price analysis is bullish today as further downside was rejected at $170 after a strong decline over the last 24 hours. Therefore, we can assume SOL/USD has set a new low, and recovery will be seen over the next 24 hours.
Overall, the cryptocurrency market has seen a strong decline over the last 24 hours. The market leaders, Bitcoin and Ethereum, have seen a strong decline of 16.94 and 14.65 percent, while Solana (SOL) has lost around 19 percent.
Solana price movement in the last 24 hours: Solana drops further, finds support at $170
SOL/USD traded in a range of $181.46 – $239.12, indicating extreme volatility over the last 24 hours. Trading volume has increased by 75 percent, totaling $6.48 billion, while the total market cap trades around $58.9 billion, ranking the coin in 5th place overall.
SOL/USD 4-hour chart: SOL looks to recover?
On the 4-hour chart, we can see bullish momentum returning for the Solana price action today as bears are finally exhausted.
Solana price saw strong bullish momentum push the price higher for most of the week after support was found around $185 last weekend. However, yesterday, SOL/USD peaked at $244, leading to a drop lower during the second half of the day.
Overnight, bearish momentum continued pushing lower, with the $185 previous low broken. Further downside followed in the morning as bears briefly touched the $170 mark.
However, from there, a quick reaction higher was seen this morning and is currently still in play. Likely we will see the Solana price action continue higher later in the day, as bulls are eager to regain some of the loss seen earlier.
Solana Price Analysis: Conclusion
Solana price analysis is bullish today as we saw quick rejection from the $170 mark this morning. Therefore, a new swing low has been set, likely leading to recovery over the next 24 hours.
While waiting for Solana to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.