Humanity Protocol’s 1100% relief rally vanishes in 48 hours: What’s going on?
The shattered user trust following the Humanity Protocol exploit meant that recovery was a long, difficult road.
Humanity Protocol [H] corrected by 40% in the past 24 hours. Since making a high of $0.609 on Sunday, the 14th of June, the H token is down by 73.8% in just over 48 hours.
The structural break on the 1-day timeframe came on Monday, the 8th of June. Since then, the token reached a low of $0.052 and climbed to the $0.554 level over the following 5 days.
The 40% drop over the previous day’s trading followed a rejection from the 61.8% retracement level. Structurally, H was firmly bearish. The market sentiment around the altcoin was not encouraging, either.
What has happened since the exploit?
This represented a whopping 1,064% move that was just part of the relief rally. It showcased extremely high volatility for a token that faced a major exploit. The protocol has also faced criticism following the exploit, damaging trust.
AMBCrypto reported that attackers gained access to the private keys linked to a foundation member. Crypto sleuth ZachXBT pointed toward a supply concentration to make the point that it was unclear if the exploit was theft or market maker-related.
Allegations of this kind helped explain the divided community.
An incident update, published on the 12th of June, helped clarify that the attacker used stolen administrative credentials to upgrade contracts.
They then moved H tokens across the Ethereum network, printed more H on the Binance Smart Chain, and used DEXes such as Uniswap and PancakeSwap to sell the tokens.
This caused the massive price plunge as the selling also affected market liquidity and led to the price collapse.
The reclaim of the $0.50 key area did not last long, and the short-term bias has since flipped bearishly. It liquidated short sellers on the way higher but was never en route to recovery following the exploit.
Traders’ call to action – Sell
Sentiment was deeply pessimistic, price action was extremely volatile, and the relief rally has run its course.
The $0.20-$0.25 local supply zone has already been tested as resistance. The downward momentum was strong, and another drop to or even below the $0.052 low from last week appeared likely.
Final Summary
- The Humanity Protocol token has seen massive volatility in recent days. Just its relief rally measured close to 1,100%.
- The shattered user trust following the exploit meant that recovery was long and difficult.
