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Consolidation Phase Starts As Token Movement Plateaus

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After the market’s impressive recovery, Solana (SOL) has entered another phase of consolidation which has led to lower volatility giving bulls a much-needed break after posting massive gains. According to quinjicoThe token is down just 2% in the past 24 hours but is still in the green on the 30-day timeframe at gains of over 9%.

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Although SOL made significant gains during the strong market rally, there were some news items that also impacted the token’s movement, hampering growth while pushing some investors away from the token.

A major security vulnerability has been quietly fixed.

Last Thursday, the Solana Foundation discovered a security vulnerability, prompting it to quickly release a patch to fix the issue. According to Solana investigator Laine, the vulnerability was known After being contacted by members of the Solana Foundation, they advised them to issue an upcoming security patch along with the date and identifier of the incident.

After 24 hours, the patch was pushed to GitHub, making it available to investors. It included the patch itself, along with instructions for verifying the downloaded files. All of this was done in complete secrecy.

“Over the next 24 hours, several other core members reached out to confirm readiness and reaffirm the need for urgency and confidentiality,” Lin stated in their X post detailing the incident.

Solana stock is currently trading at $154. Chart: TradingView

This has led some members of the Solana community to question the decision to keep the incident a secret from the general public, which was only revealed after the incident occurred.

“Another act of centralized control, by Solana. The key is to manage the connection with enough stakes to protect the network while maintaining confidentiality. The ability to select and connect to validators concentrates power in the hands of only a few. This undermines the decentralization of the network, which is usually the main defense mechanism of the blockchain against censorship and collusion. What’s to stop you from doing the same thing to introduce vulnerabilities into the blockchain as well?” said Dave, one of the commenters on the post, criticizing the “centralized” decision of developers and validators.

In light of this, the official account of X Solana was published It was published. “A message to the Solana ecosystem,” which appears to be a response to the public announcement of the vulnerability and its subsequent patch. The post only reiterates specific events within Solana.

Falling investor confidence leads to slight decline

The market is not the only factor influencing SOL price. The core of the platform and how it is built and value-driven also influences this. This is best illustrated by the current SOL price action, which reflects a slight loss of confidence on the part of investors in Solana.

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As of now, SOL bulls are still trying to settle around the $147.93 and $159.83 price range where they will remain until fear, uncertainty, and doubts fade away. If they manage to hold this price range, we could see SOL at a lower price level, possibly reaching $186 in the coming months.

Investors and traders should monitor Solana’s communication channels to discern whether other investors are still bullish on the platform.

Featured image by Mudrex, chart by TradingView

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