Solana Wormhole Bridge Gets Hit with 80,000 ETH Hack

Solana (SOL) has had plenty of airtime on the crypto news wires in recent weeks. Once tagged the “Ethereum (ETH) Killer”, outages have left Solana in the deep red for the current year. In spite of the ongoing outage issues, Solana continues to sit at #7 on CoinMarketCap.

Support continues to come from the platform’s entry into the NFT and DeFi spaces. Solana hit an ATH $259.95 back in early November before hitting reverse to end the year at $169.93.

Network Power Outages Test Support

In early January, news hit the wires of a distributed denial-of-service (DDoS) attack. It was the 3^rd attack in less than 6-months. This followed an attack at the end of 2021 that had impacted network performance for hours. For the network, a 48-hour outage was the most significant, however, leaving users with heavy losses.

80,000 ETH Hack to Further Test Solana Support

Overnight, news hit the wires of the Solana wormhole succumbing to an 80,000k ETH hack. Hackers reportedly targeted the Solana Wormhole bridge, with 80,000 in WETH sent to the hacker’s wallet. For the Solana platform, the result is unbacked ETH on the Solana blockchain.

According to the news report, developers are negotiating with the hackers. The wormhole page has since been taken down.

SOL Price Action

On Wednesday, SOL slid by 7.5% to end the day at $101.89. A bearish session for the broader crypto market, coupled with the latest hack weighed on the day.

For the day ahead, a move through the day’s $104 pivot level would support a run at the first major resistance level at $111 and Wednesday’s high $112.43. Plenty of support would be needed, however, to break back through to $110 levels.

Failure to move through the day’s pivot would leave support levels in play. The first major support level sits at $95.

Looking at the EMAs, SOL continues to sit well below the 50-day EMA at $136.5. On Wednesday, we also saw a bearish cross, with the 50 crossing through the 200 EMA. Early this morning, the 50-day EMA has continued to pullback from the 100 and 200-day EMAs, a bearish signal.

At the time of writing, SOL was down by 0.58 to $101.30.