- Solana (SOL) fell 6.18% to $79.06 after the Drift Protocol suffered a $285M exploit, causing reduced DeFi activity and market confidence.
- Technical indicators remain bearish, with $76 as key support and recovery unlikely without a move above $88.32.
Solana (SOL) is facing strong selling pressure after a major security breach in the Solana-based Drift Protocol. The asset dropped 6.18% to $79.06, trading well below all key moving averages, highlighting ongoing bearish sentiment.
Drift Protocol Exploit Shakes Solana Market
On April 1, Drift Protocol suffered an exploit exceeding $285 million, accounting for over 50% of its total value locked. Platform transactions were halted as the team launched investigations. The exploit, reported as the second-largest in Solana’s history, caused a significant drop in DeFi activity and DEX trading volumes, weakening overall confidence in the SOL ecosystem.
Technical Indicators Signal Further Downside
SOL is trading below major technical levels, including MA-20 at $87.80, MA-50 at $85.76, and MA-200 at $138.87. The Ichimoku Kijun line at $88.32 represents immediate resistance. Momentum indicators remain bearish:
- MACD signals sell across all timeframes.
- RSI sits at 40.15, reflecting continued selling pressure.
- Stoch RSI and CCI are deep in oversold territory.
- Bollinger Band Percent (BBP) shows overbought conditions intraday but oversold on shorter periods.
Analysts note high volatility and intraday weakness, with SOL moving in a tight range of $78.41–$81.71 after the sharp decline.
Short-Term Outlook Remains Bearish
Traders should watch the $76.00 support level closely, as a break below could trigger further downside. The expected trading range over the next five days is $76.00 to $84.00. Analysts suggest that a sustainable recovery is unlikely until SOL closes above $88.32, the Kijun resistance level. Anton Kharitonov from Traders Union emphasizes that sentiment remains negative following the Drift Protocol exploit, and technical indicators continue to favor the bears.
Long-Term Predictions Show Potential Upside
Despite the short-term pressure, some projections indicate possible recovery and growth in the months ahead:
- 1-month: $81.51 (+2.98%)
- 3-month: $170.05 (+114.85%)
- 6-month: $301.72 (+281.2%)
- 1-year: $207.81 (+162.55%)
These projections assume broader market stabilization and improved sentiment within the Solana ecosystem.
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