Santiment, one of the leading crypto analytics platforms, reported that negative sentiment is surging around XRP after an unsuccessful attempt to hack Bitfinex using a “Partial Payments Exploit.” The incident has added further pressure on the altcoin, which has been experiencing a lackluster performance in 2024.
The attempted hack on Bitfinex, one of the prominent cryptocurrency exchanges, involved a “Partial Payments Exploit” that fortunately failed. Despite the unsuccessful nature of the attack, it has contributed to a rise in negative sentiment towards XRP within the crypto community.
Ripple’s token, often touted as one of the major altcoins in the market, has been facing challenges in maintaining positive momentum in the current year. The coin’s price performance has been described as middling, with investors closely monitoring its movements amid the evolving market dynamics.
Despite recording impressive price spikes in 2023, the cryptocurrency struggled since the start of 2024. As of now, Ripple’s token is trading at $0.5737, with a 1.63% decrease in the last 24 hours.
Analysts point to the Relative Strength Index (RSI) for XRP, which currently stands at a low level. The RSI is a key technical indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in a particular asset. In the case of XRP, the low RSI suggests a potential buying opportunity, indicating that the altcoin may be undervalued at its current levels.
Despite the negative sentiment following the Bitfinex hack attempt, some experts see an upside for XRP in the near future. The low RSI, coupled with the overall market fear, uncertainty, and doubt (FUD), creates a scenario where the altcoin could experience a rebound.
WhaleAlerts Flags $15 Billion XRP Movement
Bitfinex’s Chief Technology Officer, Paolo Ardoino, took to social media to confirm the incident, revealing that the exchange had detected and thwarted the attack. According to Ardoino’s post on Monday, the exploit involved utilizing a feature of the XRP Ledger network.
WhaleAlerts, an on-chain service, raised the alarm after nearly $15 billion worth of XRP was flagged for movement in what appeared to be a substantial transaction. This amount accounted for almost half of XRP’s total market capitalization, which stands at $31 billion. However, further investigation revealed that the actual transfer was a mere transaction of a few cents worth of XRP. The attempt failed as the sender lacked the necessary liquidity to execute the hack successfully.
The exploit aimed to deceive Bitfinex into accepting the transfer as legitimate, potentially creating an opening for a more significant hack. Fortunately, Bitfinex’s systems quickly identified the transaction as a “partial payment” due to an inherent feature of the XRP Ledger.
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