Key Takeaways:
- The Solana community on Twitter is toying with the idea of a hard fork.
- The fallout of the SEC lawsuit against major crypto exchanges prompted the request.
- Bears remained in control of SOL price action.
PATNA (CoinChapter.com) — Solana should undergo a hard fork to safeguard itself from the SEC lawsuit, the blockchain platform’s community mused on Twitter.
The blockchain platform, once touted as the “Ethereum killer,” is struggling after being caught in the SEC’s regulatory spotlight. Moreover, Solana had previously felt the brunt of FTX’s collapse as Alameda Research dumped a substantial sum of SOL tokens to safeguard its interests.
Safe to say, Solana has not had an easy time since Oct 2022, which is why the latest attack might have prompted the community to think of a hard fork. Crypto journalist Colin Wu noted that demand for a hard fork was catching up on Twitter, with some influencers becoming a part of the movement.
Abracadabra founder HGE.ABC also favored the hard fork, citing the example of Etheruem (ETH) and Ethereum Classic (ETC). The Helius founder was replying to a tweet by a user looking to poll users on the benefits of a Solana hardfork.
Also Read: 3 reasons why Alexander Soros should invest in the crypto sector
However, Wu noted that the community remained divided on the hard fork issue. Additionally, supporters of the proposal lack an actual plan for implementing the hard fork.
Not Everyone In Favour Of A Solana Hardfork
Interestingly, Mert Mumtaz, CEO of Solana-based Helius Labs, categorically denied any plans for a Solana hardfork. Mumtaz claimed that no validator or developer supported the hard fork idea.
The Helius Labs co-founder also highlighted that rumors of fork might have “nothing to do with SEC” but might be related to Alameda Research, FTX’s sister company. Other users also stated that the idea seemed ridiculous.
Meanwhile, Messari noted that while Solana continued to attract new users to the blockchain platform, user retention remained dodgy. The on-chain data provider stated that Solana needed “more compelling and distinctive applications that provide a captivating user experience” to improve its retention numbers.
Bears Strangling SOL Price Action
SOL price remained in a downtrend, with bears firmly in control. The bulls conceded ground on June 12 after staging a slight rebellion on June 11. As a result, the Solana token price dropped over 6% to form a daily low near $14.75 on June 12.
If the SEC lawsuit FUD continues to cause panic selling, SOL price might drop to its support level near $14.2.
Furthermore, breaching the immediate support level could induce more market panic, causing the Solana token price to test support near $13 before recovering.
The relative strength index for SOL continued to be oversold, clocking at 26.71 on the daily charts. As oversold RSI levels often precede a bullish trend reversal, traders consider the occurrence a buy signal.
Hence, should buyers enter the market, SOL price might find the impetus to rise to resistance near $15.8. Moreover, breaking and consolidating above the immediate resistance level might help the Solana token price target the resistance level near $17 before retreating.
