Solana (SOL) eyes a 70% crash while fake Phantom security updates ravage wallets

YEREVAN (CoinChapter.com) – Solana (SOL) traded at $31 in the European session on Oct 11, after three undecisive weeks flatlining at crucial support. The digital asset copied Bitcoin’s price action and formed a similar setup that could cost SOL 70% of its valuation.

SOL could break under significant support

Solana token traded within a bearish setup dubbed ‘descending triangle.’ The latter entails a descending resistance that caps upside attempts and flat support, preventing sharp declines. SOL retested the two trendlines consecutively and may confirm the setup by breaking below the support.

Moreover, the descending triangle is a continuation pattern. Meaning, after SOL exhausts the setup, it is likely to adopt the bias preceding the triangle. Thus, the Solana token could lose an additional 70%, dropping to approximately $10.

Also read: Russian Ruble and Gazprom Stock Plummet – American LNG For The Win?

The dropping trading volumes support the claim, succumbing to bearish pressure. In short, declining trading volumes signify growing indifference among investors. Considering the volatile macroeconomic climate, the investors’ reluctance to take risks is justified.

However, there are local blockchain factors affecting SOL as well.

Solana wallets under attack

According to the latest news, unknown hackers spread password-stealing malware through NFT airdrops posing as Solana Phantom security updates.

The scam has been ongoing for over two weeks, airdropping the malware through NFTs named PHANTOMUPDATE.COM or UPDATEPHANTOM.COM. After the unsuspecting users open the airdrop, the latter claims to have issued a security update for the Phantom wallet.

Additionally, hackers encourage wallet holders to use the enclosed link or the listed website. To add urgency, the message claims that failing to download the fake security update “may result in a loss of funds due to hackers exploiting the Solana network.”

If users download the ‘update,’ hackers gain access not only to their crypto but also to browser information, history, passwords, cookies, SSH keys, and other personal information. The NFT airdrop hack could be related to the Solana heist in August that wiped out $8 million worth of funds from over 8,000 wallets.