Solana Oversold as Binance Hack Raises Ether Selling Risk
Solana has reached the RSI 30 oversold threshold, while ether’s RSI is around 34, as traders weigh rebound prospects against risks from the reported Binance hack. The FBI attributed the theft of about $6.4 billion to North Korea’s TraderTraitor group and asked crypto services to block hundreds of linked wallets. More than 600 flagged addresses are on Ethereum, compared with just one on Solana. Investigators say the stolen funds are being moved mainly into ether for laundering through swaps, bridges and DeFi services. Stablecoin issuers have frozen more than $2.4 billion, and Binance says it has replenished 90% of the missing crypto and plans to resume withdrawals on Sunday, Nov. 1. Ether was near $2,270 and below its 50-day and 200-day moving averages, with resistance around $2,360 and support near $1,940. Solana traded around $95.55, also below both averages; its first rebound hurdle is near $100, with support around $77.84. The article sees Solana as more likely to bounce first because it is oversold and has less direct exposure to the stolen funds. However, further ether selling could weigh on the wider crypto market.
Bearish
The overall near-term impact is bearish because the reported theft creates uncertainty and a potential supply overhang, particularly for ether. The FBI says most flagged wallets are on Ethereum, and the article reports that the stolen assets are being moved mainly into ETH. If attackers sell or swap those funds as they launder them, the resulting supply could add pressure to ETH and, through market-wide sentiment and trading correlations, weigh on other cryptocurrencies. This resembles past exchange hacks and large-scale liquidation events: even when some assets are frozen or recovered, uncertainty over remaining funds can prompt traders to reduce risk until wallet flows and exchange operations become clearer.
Price indicators in the article reinforce caution. ETH is below its 50-day and 200-day moving averages, its RSI is weak but not yet oversold, and MACD remains below its signal line. SOL is also below both moving averages and its MACD has not turned, although its RSI at 30 suggests selling may be stretched. That makes a short-term Solana bounce plausible, but not confirmed. The cited levels are key: ETH faces resistance near $2,360 and support around $1,940; SOL’s first hurdle is around $100, with support near $77.84. A smooth Binance withdrawal reopening and a slowdown in laundering flows could ease pressure and support a relief rally. Conversely, fresh wallet dispersal or selling could deepen losses. Longer term, the effect depends on how much of the stolen crypto is frozen, recovered or sold, and whether the incident prompts stronger security and controls. The bearish classification reflects immediate uncertainty and sell-side risk, not a certainty of sustained market decline.