Solana defends $70 as Drift hack rattles SOL; falling wedge breakout nears

Solana (SOL) bulls defended the $70 support level after SOL stabilized near $80. The move comes as price slid nearly 9% from Wednesday’s ~$85.1 high to ~$77.6 low, following a major $285m exploit on Drift Protocol, a Solana-native trading venue. Data cited from DeFiLlama shows Solana TVL fell by nearly $1bn since the incident. Broader risk sentiment also pressured Solana. Escalating Middle East tensions, including Iranian statements about targeting 18 U.S. military assets and U.S. strikes on regional logistics and supply infrastructure, raised fears of prolonged regional disruption. Oil prices rose above $110, adding inflation and supply-chain stress that tends to push investors away from risk assets. Technically, Solana is near a multi-month falling wedge on the daily chart. A confirmed falling wedge breakout is often associated with a bullish reversal, with a potential upside objective around $111 (linked to the 23.6% Fibonacci retracement). However, momentum indicators still warn traders: Chaikin Money Flow is negative (-0.05), and Aroon Down remains high (92.86%) versus Aroon Up (35.71%), suggesting bears still control trend strength. For traders, Solana faces a key decision zone: defend the $70 floor for a reversal attempt, or lose support and extend the downside if momentum deterioration persists.