The BNB Bridge hacking attempt, which occurred in October 2022, put the BSC-based Venus Protocol in a difficult position. The protocol currently weights 900,000 BNB positions worth $200 million. Venus will risk liquidation if BNB price breaks a critical support. The altcoin market is preparing for another crisis in the coming days.
Venus risks BNB liquidation: Altcoin market supports collapse
The BSC-based Venus Protocol is at risk of liquidation due to a recent vulnerability and falling Binance Coin (BNB) price. The altcoin community has drawn attention to issues with the BNB collateral that was seized in the hack attempt. The hack that occurred in 2022 caused the BNB price to drop. The hackers liquidated some of these funds over the weekend.
According to data from PeckShield, the health rate of the BNB Bridge exploiter on Venus stands at the dangerous 0.99 level. As BNB’s price drops to $207.9, concerns about further price drops add to the vulnerability of this address.
BNB Bridge hackers are currently holding large amounts of BNB. It also holds a significant debt position on Venus Protocol. Despite the hack, Venus is still the second largest DeFi project on BSC, with the Altcoin project currently holding a total locked value of over $600M.
The important thing here is that the BNB price stays away from the levels that will trigger liquidation. As quoted by Kriptokoin.com, this level was previously $220. With the recent decline and additional liquidity, it is currently around $200.
Solana, who lost $ 20, is on the verge of free fall
Last week’s market correction has been devastating for most altcoins, as has BTC and ETH. Weekly time frame technical analysis for SOL shows that the price broke out of a long-term descending resistance line. The line has been in place since the ATH level, specifically 609 days.
In an extreme bear market, SOL price could drop to the resistance line and confirm this as support. The line is currently at $15.50, 26% below the current price.
Contrary to the relatively neutral outlook on the weekly technical analysis, the daily trend is bearish. The primary reason for this was the observed divergence above the $27 resistance area. The formation of a very long upper wick (white circle), followed by a significant decline later on, also supported the decline.
Also, SOL accelerated the rate of decline on August 15. Thus, it formed a lower high (red icon) two days later, which led to a drop of $20. These events are indicative of signs of weakness, with the altcoin price failing to reach the $27 mark.
What levels does an extreme bull point to?
In such a scenario, a conceivable future price scenario would involve a significant rally of around 115%. This clears the path towards the next resistance at $46. Solana is currently trading in the $21 zone, where it has technically cooled the downtrend. For the altcoin, this level will be critical for the short-term outlook.
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