Farcana price went parabolic on Tuesday morning after the developers sent an update about a recent hacking event. The FAR token surged by over 115% in the past 24 hours, reaching a high of $0.043, its highest point since June 16th.
Farcana not hacked
The FAR token price plunged hard on Monday after the developers sent a note about a hacking incident. They noted that one of the big names in the blockchain industry they were working with had become compromised, resulting in a market sale of a loan extended to them.
Upon discovering the compromise, Farcana promptly informed exchanges and other market makers, taking immediate action to isolate the activity. Importantly, this exploit did not directly impact Farcana.
In a separate update, Farcana reinforced that its wallets were completely secure and that no exploit was found on the FAR smart contract, which explains why the token price has gone parabolic in the past few hours.
Farcana is one of the fastest-growing players in the blockchain industry with a market cap of over $25 million. Backed by Animoca Brands, the developers have built a multi-player team-based shooter game where people play and earn rewards.
The developers host regular tournaments where users compete to win a prize pool of about $30,000. Its first tournament had over 30,000 participants.
Farcana price forecast
Like other altcoins, Farcana has been under intense pressure in the past few weeks as the crypto sell-off gained steam. It crashed from a record high of $0.2180 in January to a low of $0.016 on Monday as the hacking rumors spread.
On Monday, Farcana's price rebounded after forming a hammer pattern, one of the most popular candlestick patterns in price action analysis. However, it has remained below the 25-day moving average.
Looking ahead, the token is likely to continue its upward trajectory as buyers set their sights on the key resistance point at $0.068, its highest point on June 15th. However, it's important to be aware of the risk.
This rebound could potentially be a dead cat bounce, a term used to describe a short-lived rally. A drop below this week’s low of $0.016 would indicate a further downside.
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