A cryptocurrency token belonging to a platform that suffered a $5 million exploit has plunged sharply, and an analytics firm thinks it presents an opportunity for bold dip buyers to add it to their portfolios.
What Happened: Loopring (CRYPTO: ETH)-based cryptocurrency token of the zk-rollup-based platform was exploited, allowing the attacker to steal $5 million worth of cryptocurrencies from different wallets.
The exploit resulted in a 20% decline in LRC’s price, according to on-chain analytics firm Santiment.
The price decline was fueled by considerable FUD in the market, with most traders dumping their LRC holdings anticipating further losses. The 9% spike in trading volumes in the last 24 hours added weight to the net selling narrative.
However, Santiment added that a high level of crowd fear can precede a bullish turnaround, luring traders looking for opportunities to buy low.
Why It Matters: The LRC token has tumbled nearly 61% after hitting yearly highs in mid-March. Currently, LRC is in a region that supports a price rebound. These conditions can be enticing for traders who are bullish on the short to medium-term prospects of the coin.
LRC’s dip comes even as the broader cryptocurrency market continues to trade flat in the absence of any macroeconomic and cryptocurrency-specific triggers.
Price Action: At the time of writing, LRC was exchanging hands at $0.2094, marking a 4.74% drop in the last 24 hours, according to data from Benzinga Pro.
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