SafeMoon, a popular cryptocurrency, suffered a major setback as its liquidity pool was hacked, resulting in a loss of $8.9 million. The news caused panic among investors, leading to a 26% drop in the value of SafeMoon’s native token $SFM. The hack has raised concerns about the security of decentralized finance (DeFi) platforms and the need for stronger measures to protect users’ funds.
On March 29th, 2023, the decentralized finance community was rocked by news of a major security breach in SafeMoon’s liquidity pool. According to reports, hackers were able to drain $8.9 million from the pool, resulting in a sharp drop in the value of the SafeMoon token.
Following the news, the price of SafeMoon (SFM) fell by 26%, causing panic among investors and leading to widespread speculation about the future of the project. Many in the community are questioning the security protocols in place on the SafeMoon platform and calling for a swift response from the team.
SafeMoon’s liquidity pool is a crucial component of the project’s ecosystem, providing the liquidity necessary to support trading on various cryptocurrency exchanges. The breach has raised concerns about the security of decentralized finance platforms more broadly, highlighting the need for continued vigilance and improvement in security measures.
In response to the breach, the SafeMoon team has released a statement acknowledging the incident and promising to investigate the cause and take steps to prevent future breaches. They have also advised users to exercise caution when using the platform and to monitor their accounts closely for any unusual activity.
Safe Moon Price Analysis
Safecoin price analysis is showing a downward trend in recent hours after the news of a security breach. The price has already dropped from its previous peak of $0.00016736 to a current level of $0.00019034, representing an overall 26% drop in the past 24-hour period.
The support level for the token has been established at $0.00016736, and if bearish sentiment persists, we may see it drop until that level is breached, and if bulls enter the market soon, it can bounce back up to the $0.00025165 mark again, which may be the ideal level for traders to enter in at.
Technical analysis also suggests that further declines are likely in the near future, given the negative sentiment in the market. The Moving Average Convergence Divergence (MACD) indicator is in the midst of a bearish crossover, with the MACD line below the signal line. This suggests that further drops can be expected in the coming days.
The 50-day moving average has also fallen below the 200-day moving average, a sign of bearish sentiment in the market. The moving average indicator in the daily chart is also bearish at $0.0002253, indicating that the market is likely to remain bearish in the near term. The RSI is at a low of 44.61, indicating strong bearishness in the market currently.
Overall, the security breach has caused investors to become wary of investing in SafeMoon and it remains to be seen whether the token price can recover in the long term. The volume of trading has also decreased substantially since news of the security breach broke out, signifying that traders are not willing to risk their money in the current environment. This further reinforces the notion of a bearish phase for the SFM price in the short term.
