Badger DAO prices recover as the platform works to restart smart contracts

Badger DAO is working to restart smart contracts on the platform. Image from Twitter
Badger DAO is working to restart smart contracts on the platform. Image from Twitter

Key Takeaways:

  • Badger DAO is working to bounce back from the Dec 2 exploit of its platform.
  • The platform’s native token jumped 32% on Friday.

NEW DELHI (CoinChapter.com) — DeFi platform Badger DAO is working to recover from the Dec 2 exploit that led to the loss of over $130 million.

The platform, which works to bring more Bitcoin into the DeFi ecosystem, released a blog post giving technical details of the attack. Cybersecurity firm Mandiant helped Badger compile the report, stating the phishing attack came from a malicious snippet coming from Cloudflare.

Cloudflare Workers is an interface application that runs on Badger’s cloud network. The hacker(s) used a compromised API key, created ‘without the knowledge or authorization of Badger engineers’ to deploy the attack. Additionally, the attacker injected the malicious code periodically, avoiding detection and affecting only a subset of Badger users.

Badger DAO confirmed Cloudfare had patched the exploit. The DAO also changed Cloudfare’s account password and rotated (deleted or changed) its API keys.

Related: Hacked! DeFi protocol BadgerDAO loses over $120M after front end exploit.

Furthermore, $9 million of the stolen $130 million was recoverable, as the hacker had withdrawn it from Badger’s vaults, bringing down the current total loss to $121 million. Badger continues to work with Mandiant and Chainalysis and authorities to recover any funds possible.

Out of 146 transactions affected in the exploit, 34% (51) contain recoverable assets, and 17% (25) contain governance assets. The remaining 70 contain other assets. Badger DAO also requested users to decline the affected smart contract address.

Badger DAO Price Charts

As news of the exploit spread, Badger DAO’s native token BADGER took a nosedive, losing 95% of its value between Dec 2’s open ($26.99) and Dec 9’s close ($13.84) levels. However, with Badger taking steps to recover funds, investor confidence returned, and the token jumped over 32% on Friday before prices pared, leaving it with 7.8% intraday gains.

BADGER continued its recovery as it entered the weekend. However, previous key support now stands as resistance for the Badger token at $16.8. Bulls would need to move and consolidate above it to ensure a long uptrend. Once BADGER moves above immediate resistance, bulls would target resistance at $19.6, near its 200-day MA trendline.

A sustained upside movement would bring the Badger token near the $21.6 price level, near its 100-day MA line, before any pullbacks occur.

BADGERUSD on the daily charts with RSI. Source: Tradingview.com
BADGERUSD on the daily charts with RSI. Source: Tradingview.com

On the other hand, support for the Badger token is at $14.3. If prices move further down, the support at $12.5 will come into play. A market-wide selloff could bring BADGER to $11, a price level the token last touched on Aug 3. Meanwhile, the relative strength index is neutral, clocking 35.59 on the daily charts.

Also Read: DeFi token Aave to hit $1K? This bullish formation says yay.

Furthermore, trend-based momentum oscillator MACD continues to be bearish for BADGER, with negative bars on the MACD histogram highlighting that the MACD line (difference of 12-day and 26-day EMA) continues to move below the MACD signal line (9-day EMA of MACD).

BADGERUSD on the daily charts with MACD. Source: Tradingview.com
BADGERUSD on the daily charts with MACD. Source: Tradingview.com

However, the histogram bars are contracting, indicating the momentum is slowly moving towards bullish levels. The two MACD lines are likely to chart a bullish crossover soon. In detail, a bullish crossover occurs when the MACD line moves above its signal line.

At the time of writing, BADGER was trading at $15.8, up 5.93% on the day.

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Badger DAO, Badger DAO prices recover as the platform works to restart smart contracts

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