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• Solana has been thought to be an Ethereum killer due to its superior qualities

• The blockchain has been weak to frequent hacks

• SOL rose by 11% after the inflation knowledge

Solana SOL/USD has usually been touted as a worthy competitor of Ethereum. Its low transaction prices and excessive speeds have seen the blockchain labeled an Ethereum killer. Nonetheless, Solana has confronted mounting challenges owing to frequent exploits.

Barely every week in the past, Solana wallets had been hacked, with about 8,000 of them focused. The Phantom, TrustWallet, and Slope customers had been all affected. The hack pushed the SOL token to commerce decrease. On August 9, Phantom stated its programs had been uncompromised in the hack. The latest hack is simply one in every of many who have uncovered the vulnerability of Solana. While the blockchain is touted to develop exponentially, the hacks may harm its credibility.

Wednesday’s inflation knowledge got here optimistic for many cryptocurrencies. Solana token was one in every of them because it staged recoveries. As of press time, the token was buying and selling up by 11% in the final 24 hours. That illustrates that traders stay optimistic about recoveries. But is SOL now bullish?

SOL eyes a breakout of the resistance after the latest positive aspects

Source – TradingView

Technically, SOL is buying and selling at the $43 resistance zone. A MACD crossover may counsel that the cryptocurrency is getting into the bull territory. 

At the present value, two situations are possible. The first is a break above the $43 resistance. That will likely be confirmed by the shut of the day by day candle. If SOL efficiently clears $43, that can set it to the subsequent resistance at $60. Alternatively, SOL may slip again to the consolidation zone. In that case, the bull case will likely be invalidated.

Summary

SOL is bullish, but we’d like to await a break above $43. The cryptocurrency may additionally slip again to the consolidation zone if a breakout fails.