"SOL Plunges 4% Amid Bybit Hack Laundering and FTX Outflows"
1min readSolana (SOL) price experienced a significant drop on Sunday, February 22, reaching a low of $167, a 4% decline from the previous day. This downturn can be attributed to two primary factors: the Bybit hack and the impending SOL outflows from the FTX estate.
The Bybit hack, which occurred on Friday, resulted in a $1.4 billion loss. Hackers linked to this incident are now allegedly using the Solana memecoin launchpad Pump.Fun to launder the stolen funds. According to blockchain analytics platform WuBlockchain, the hackers transferred 60 SOL to an address that then launched a token called QinShihuang, which traded over $26 million.
This revelation has sparked negative sentiment among Solana critics, who point to the blockchain's repeated links to high-profile exploits. The controversy comes just a week after Solana faced scrutiny over its alleged ties to the LIBRA memecoin rug pull.
Adding to Solana's short-term woes is the ongoing repayment process for victims of the collapsed FTX exchange. According to Bitget, over $800 million in funds were distributed to 160,000 customer accounts starting February 18. An additional 11.2 million SOL (approximately $2.03 billion) is due for distribution on March 1, which could further dilute SOL's supply and put downward pressure on its price.
Solana's Pump.Fun platform being used to launder Bybit hack funds, mere days before the $2 billion FTX asset unlock, could prompt strategic investors to reduce their SOL exposure. If selling pressure intensifies, further declines may be on the horizon in the coming trading sessions.
Solana price forecast charts suggest further downside as bearish signals mount. SOL is trading at $168.08 after a 4% weekly decline, with price action constrained below the midline of the Bollinger Bands at $185.89. SOL remains pinned beneath the 50-day moving average at $185, reinforcing the bearish outlook. Trading volume at 1.44K suggests weakening market participation, limiting upside potential.
The Bull-Bear Power (BBP) indicator at -21.90 signals a firm grip by bears, extending a prolonged negative momentum streak. If this
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