DeFi platform Telcoin experienced a significant security breach, resulting in the loss of approximately $1.3 million in crypto assets. This incident was uncovered shortly after Telcoin suspended its app operations following user complaints about issues with the app.
Telcoin’s team acknowledged the problem on social media, stating they had temporarily halted the app’s usage to investigate the matter, promising further updates soon. Despite not providing information, user speculation suggested a possible hack, which cybersecurity firm PeckShield later confirmed.
PeckShield reported that Telcoin had been exploited but did not disclose the specifics of how the attack occurred or the exact cryptocurrencies stolen.
Following this exploit, Telcoin’s token (TEL) value plummeted by 65% at its lowest spike, reflecting investor nervousness and withdrawals. The token experienced a quick recovery but is still 24% down overall from yesterday’s high, leaving a larger wick on the daily chart.
From its all-time high of $0.065 made on May 13, 2021, the price of TEL has been in a bear market, resulting in a 98% depreciation, measured to its lowest point of $0.00088 on October 11, 2023.
We saw a significant recovery of over 200% since this low, as the price reached $0.0028 on December 8. However, this high was lower than the previous one, and the price encountered resistance, causing sideways movement.
On December 24, the price made a slightly lower high of $0.0024, from which it fell to $0.00086, slightly lower than its previous low on October 11, but quickly snapped back, closing the daily chart at $0.0015. Today, it reached $0.00196 at its high but again shows signs of struggle.
The daily chart RSI is at its oversold level, indicating the potential for a larger rebound, but the current sentiment doesn’t favor a bullish outlook.
Looking closely at the wave structure behind the last rise, we can see that it was impulsive and could have been wave 1 of the larger starting uptrend. But today’s downward spike was rather aggressive for wave 2, although this correction is usually deep and could lead to a 100% retracement without invalidating the count.
We saw a larger wick, which indicates that buyers have quickly stepped in and scooped up the token , offering support. But is this enough to spark another round of aggressive buying that can result in a breakout above the descending trendline?
The price is still looking for support around the 0.5 Fibonacci retracement level, which corresponds with the horizontal support zone around $0.0018. If it manages to hold above the likelihood of further ascend would be high, and we could see the price embarking on a lasting upward journey.
However, if the price shows weakness and falls back below $0.0018, this would mean that the bearish sentiment caused by the fear and uncertainty is still present and that the buying pressure previously seen was just a reaction to a fast drop.
In this case, the price could head to a lower low than on October 11, and it may hit the descending support level again to find its bottom.
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