Solana DEX Raydium confirms exploit worth $2 million, triggers a crash in SOL price

Solana emerged as a rising blockchain amassing over 91 decentralized finance (DeFi) protocols which are currently valued at $265 million cumulatively. One such decentralized application (Dapp) lost about 30% of the total value locked on it following an exploit which, by the looks of it, impacted the DEX significantly.

Solana Dapp exploited

Solana-based decentralized exchange (DEX) Raydium fell victim to an exploit that reportedly resulted in a loss of $2 million. Although Raydium did not confirm what amount worth of assets were stolen by the attacker, it did verify that the exploit took place. 

As per the DEX, the exploit mostly affected the liquidity pools on the platform and is currently being investigated. Raydium further stated,

"Initial understanding is owner authority was overtaken by attacker, but authority has been halted on AMM & farm programs for now."

Apparently, the attacker's account noted transactions wherein $2 million was transferred to Ethereum by the exploiter. This was further backed by crypto on-chain portfolio tracker Nansen which stated that the attacker's wallet had received over $2.2 million. This also included over $1.6 million worth of SOL.

While more details are awaited on the attack, the impact is already visible on Solana price, which dipped by more than 8% in the last 24 hours.

Solana price bows to a three-week low

Solana price, trading at $12.84 at the time of writing, failed to breach its immediate resistance level at $14.31. The 8.55% crash brought the altcoin close to its immediate support level at $12.80, which by the looks of it, the coin was close to falling through. 

Had Solana price slid below this level, the bearish outlook for the altcoin would have become highly likely. SOL would have declined further toward its critical support at $11.70, which was last tested by Solana a month ago, registering the lowest price in 21 months.

Another daily candlestick close below this would have set the altcoin on the path to tag the lows of $10.22.

SOL/USD 1-day chart

But not all hope is lost, as the bulls could pull the altcoin up from declining further by generating some buying pressure. In such a case, Solana price would be looking to breach the resistances at $14.31 and $14.80.

The cryptocurrency's next target would then be $16.12, and flipping this into a support floor is critical. A rise above this level would invalidate the bearish thesis, triggering a recovery toward $18.96.