Solana Drops 3.6% to $105.23 After Avici Hack Shakes Ecosystem Confidence

Solana USD dropped 3.6% to $105.23 in 24 hours as a $653,000 security breach at Avici, a neobank built on the Solana network, triggered investor concern and profit-taking. The hack on August 28 exposed ecosystem risks, though the Solana protocol itself remained uncompromised. Broader market weakness, with Bitcoin down 2.1% and total crypto market cap falling 1.93%, amplified the selloff despite SOL’s 39.5% gain over the past month.

Why the Avici hack rattled Solana investors

A hacker withdrew over $653,000 from Avici user collateral on August 28, causing the AVICI token to plunge roughly 40%. The breach did not compromise Solana’s core protocol, but it exposed application-layer vulnerabilities and raised questions about ecosystem maturity. Investor confidence in Solana-based apps weakened, triggering a cascade of selling pressure on the main token.

Technical indicators show extreme overbought conditions

Solana’s RSI stands at 73.03, deep in overbought territory above the 70 threshold, signaling a potential pullback. The MACD histogram at 2.96 remains positive but weakening. Price sits at $105.23, above the Bollinger Band middle at $83.83 but below the upper band at $107.61, leaving room for further upside if momentum holds. The ADX at 37.06 confirms a strong underlying trend despite today’s decline.

Meyka forecasts Solana at $129 in one month

Meyka’s one-month forecast of $129.01 implies a 22.6% gain from the current $105.23 price, suggesting the market still expects recovery. The 12-month target of $166.91 represents a 58.6% upside. These forecasts reflect confidence in Solana’s fundamentals, including $60.91 million in ETF inflows on August 28, offsetting short-term hack-driven uncertainty. Forecasts may change due to market conditions, regulations, or unexpected events.

Support and resistance levels define the near-term path

Solana’s key support zone sits at $100 to $102, aligned with the 7-day moving average and a critical Fibonacci level. Resistance stands at $110. The 50-day moving average at $79.09 lies well below current price, providing a longer-term floor. If Bitcoin holds above $77,000, institutional demand and ETF inflows could stabilize SOL and push it back toward $110 within 24 to 48 hours.

Final Thoughts

Solana’s 3.6% drop reflects ecosystem risk from the Avici hack and profit-taking after a 39.5% monthly rally, not fundamental weakness. With RSI at 73 and strong support at $100, the data suggests a near-term correction within a longer uptrend. Meyka’s forecasts point to $129 in one month if institutional demand persists.

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Disclaimer:

Cryptocurrency markets are highly volatile. This content is for informational purposes only. The Forecast Prediction Model is provided for informational purposes only and should not be considered financial advice. Meyka AI PTY LTD provides market data and sentiment analysis, not financial advice. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.