Key takeout
What do Gain’s Rising MFI and Oversold RSI suggest about its price action?
If purchasing pressure continues and momentum is strengthened, it indicates a possible rebound.
How do derivative traders react to volatility after gain hacking?
Despite the amount of bearishness, rising funding rates and long positions suggest a possible recovery trend.
Griffin AI [GAIN] Market performance sent shockwaves through investors as assets fell 78% following the major BNB chain hacks.
Investors have not given up yet. Market sentiment shows that they are scooping up their assets. This is a move that suggests investors view the decline as a discount.
At the press conference, gains rose 17% in the past day, but investors remained cautious. Is this a sustained long-term move or a potential bull trap?
Ambcrypto analyzes the market and provides clear insight into what to expect from your assets in the coming days.
Gain hacking and recovery momentum
The team revealed that GAIN’s recent hacks targeted the BNB chain.
Hackers misused the protocol, earning about $110 million worth of tokens with 5 billion gain tokens, dumping them on unsuspecting users, causing a major liquidity shock.
The price chart captured the event with a sharp single candle drop followed by a very volatile and volatile price action.
Source: TradingView
In particular, within this volatility, assets formed a level of support that could be known in technical analysis as the double bottom pattern.
However, this double bottom level can act as a trap. It could trigger a stop hunt that settles buyers from trading in the zone before assets move upwards sharply.
Will you fall again?
Ambcrypto analysis suggests that further declines may be visible based on current technical indicators.
Both the Money Flow Index (MFI) and the Relative Strength Index (RSI) have important nuances, but show bearish signals.
MFI ranges from 20 to 80, with measurements of 20 to 50 suggesting fluid outflow and bearish emotion, while values above 50 indicate bull inflow.
Source: TradingView
At the time of writing, Gain’s MFI was 46 years old and has been upwards. This indicates an increase in purchasing activity and a higher bid.
Once your MFI exceeds 50, you can signal the beginning of the rally.
Meanwhile, RSIs operating on a 30-70 scale showed gains in sales zones below 30.
This suggests that sales pressure may be declining and potential rebounds may be on the horizon.
There are derivative investors
Derivative investors remain active despite their overall bear derivatives content, as shown by the long-term ratio of the exchange overall.
The long/short ratio showed that while investors are selling mostly, Binance and OKX buyers are scooping their assets.
Source: Coinglass
However, open interest (OI) weighted funding rates suggest that sales dominate the derivatives market. Most liquidity comes from investors who hold long positions.
With OI-weighted funding rates rising, gains are likely to gain momentum in future sessions, potentially high, and could recover from the sales pressure caused by hacks.