Solana plunges -8.68% amid a Denial-of-Service attack (DoS attack)

• The SOL/USD is trading at $139 with a bearish bias, dropping -8.68% amid the Denial-of-Service attack (DoS attack). 
• The SOL price prediction remains bearish below significant support becomes resistance level of $151. 
• Forex trading participants may look for a sell trade below the $140 level to target $131 and $115.

The SOL/USD is trading at 139 with a bearish bias, dropping -8.68% amid the Denial-of-Service attack (DoS attack). The day before, the SOL/USD ended at $152.290, having reached a high of $163.030 and a low of $147.510. The SOL/USD extended its loss and continued its bearish streak for the eighth consecutive session on Friday. 

 If you are wondering what to expect and where to buy SOL, let’s find out below…

A Denial-of-Service attack (DoS attack)

Solana’s price has seen a continuous decline since it has faced a network error caused by a sudden surge in transaction volume. The Ethereum rival, Solana, has been declining in its token value for the past eight days continuously amid suffering a denial-of-service disruption.

Solana reported the error, causing a dip in SOL/USD

Solana reported the error by saying that their Mainnet Beta encountered a large increase in transaction load, which peaked at 400,000 transactions per second. These transactions flooded the transaction processing queue, and the network’s lack of prioritising network-critical messaging caused the network to start forking.

After this report, investors started booking profits, and the correction played an essential role in placing extra downward pressure on the prices of Solana’s tokens. The combination of profit-taking, correction, and the latest technical error on the network triggered massive selling, which has not yet eased after 8-days.

Solana weighed in with a stronger US dollar.

The rising strength of the US dollar also added extra losses in SOL/USD prices on Thursday. The US Dollar Index that measures the greenback’s value against the basket of six major currencies reached its 3-week highest level at 92.96 and weighed on SOL/USD as both have a negative correlation.

The US dollar was strong across the market after the release of better-than-expected retail sales data that raised expectations that the Fed might give some hints about tapering economic support in its upcoming September monetary policy meeting next week.

At 17:30 GMT, the Core Retail Sales from August advanced to 1.8% against the predicted-0.1% and supported the US dollar on the data front. That added a further loss in SOL/USD. Furthermore, retail sales also improved to 0.7% in August against an estimated-0.7% and helped the US dollar, which dragged SOL/USD further to the downside.

In September, the Philly Fed Manufacturing Index surged to 30.7 against the anticipated 18.9 and supported the US dollar that dragged SOL/USD further to the downside.

SOL Price Prediction – Technical Levels

Support Resistance

145.524 161.044

138.757 169.797

130.004 176.564

Pivot Point: 154.277

SOL/USD Violates Upward Trendline amid Denial-of-Service attack (DoS attack)

The SOL price prediction remains bearish below significant support becomes resistance level of $151. Currently, the SOL/USD is heading lower towards the next support level of 131.600. It’s being extended by a double bottom level. Further on the lower side, the next support will prevail around the $115.77 level. 

On the 4-hour chart, SOL/USD is facing immediate resistance at the $151 level. A bullish breakout of $151 can extend a buying trend until the next resistance level of $177. However, the 50-day exponential moving average will likely provide significant resistance at $160 levels in the 4-hour time frame.

On the bearish side, the pair is likely to find immediate support at the $131.600 level. The leading technical indicator Stochastic RSI is holding in a sell zone, demonstrating a selling trend in SOL/USD pair. Since the Solana is closing candles below 50 EMA, we may experience further selling trend until 131. Accordingly, forex trading participants may look for a sell trade below the $140 level to target $131 and $115. Alternatively, we can place a sell limit below $150 to target $132 levels. All the best.

Where to Buy SOL/USD?

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