Solana Struggles as Market Recovers: Is More Downside Ahead for SOL?

Solana Struggles as Market Recovers: Can Bulls Defend Against the Bearish Onslaught?

Due to supply being diluted by several bearish catalysts from the Bybit hack and anticipated SOL outflows from FTX Estate, the price of Solana (SOL) fell 6.19% on Monday, reaching as low as $159.24. Despite early rebound tailwinds in the crypto market, SOL saw another wave of sharp losses on Sunday. Notably, the price of Solana has fallen even more, while leading cryptocurrencies like Ethereum and Tron (TRX) have erased significant chunks of the losses incurred during Friday’s Bybit crisis. The aforementioned chart illustrates how the price of Solana fell 6% over the course of the day, closing $167 below the $170 low set during Friday’s initial fall.

Solana’s Reputation at Risk: Bybit Hackers Laundering Stolen Funds via Pump.Fun?

Reports of hackers implicated in the $1.4 billion Bybit hack have been linked to the most recent drop in SOL’s pricing. Pump.Fun, Solana’s memecoin launchpad, is purportedly being used by these hackers to launder the stolen funds. Blockchain analytics company WuBlockchain warned market observers about several transactions connected to the pilfered funds, citing official data from Solana blockchain explorer Solscan. The blockchain explorer claims that WuBlockchain found suspicious transactions connected to the pilfered assets.

However, as prominent opinion leaders denounced the Solana network’s association with yet another well-known exploit, distrust toward it increased. Only a week had passed since the LIBRA memecoin rug-pull event, which was allegedly caused by Argentine President Javier Milei.

Concerns about additional downside risk are growing since SOL is currently trading below its prior local bottom. The ongoing restitution process for victims of the FTX exchange’s failure adds to the pessimistic picture. In conclusion, strategic investors may decide to lower their SOL exposure as a result of Solana’s Pump.Fun being used to launder Bybit hack cash just days before the $2 billion FTX asset unlock. In the upcoming trading sessions, additional falls might be in store if selling pressure increases.

For more up-to-date crypto news, you can follow Crypto Data Space.