Bridged DOT token on Ethereum hacked, Polkadot’s native token exteds decline
- DOT extends its losses for the third consecutive day as buying pressure wanes, risking a break below $1.00.
- Bridged DOT token on Ethereum drops near zero after an attacker took admin control to mint and dump fake 1 billion tokens.
- Polkadot’s native token, DOT, remains safe but continues to decline.
Polkadot (DOT) is down roughly 4% at press time on Monday, marking a bearish start to the week. The bridged DOT token on the Ethereum blockchain was reportedly compromised in an admin-change attack, resulting in the creation of more than 1 billion fake DOT tokens. Meanwhile, Polkadot's native token remains safe but continues to decline. Technically, the declining trend in DOT is at risk of breaking below $1.00.
Fake DOT tokens sold on Ethereum
0xZilayo, an on-chain analyst on X, first reported the hack of the bridged DOT pair on the Ethereum blockchain on Monday. The analysis shows that the attacker targeted the HandlerV1 contract with a forged cross-chain message using Hyperbridge’s Interoperable State Machine Protocol (ISMP) to execute a “ChangeAssetAdmin” request, which replaced the admin contract with the attacker's contract.
Bypassing security and gaining admin controls enabled the attacker to mint 1 billion bridged DOT tokens, which were then transferred to Uniswap and swapped for 108.2 ETH.
The hack significantly increased the maximum supply of wrapped DOT tokens on Ethereum and dropped the market price to zero, from $1.22 before the attack. A broader market effect remains minimal while the DOT token maintains its prevailing downward trend.
Technical outlook: Will DOT extend losses below $1?
Polkadot keeps a clear bearish near-term bias as DOT holds well beneath the 50-day Exponential Moving Average (EMA) at $1.3861 and the longer-term 100-day and 200-day EMAs at $1.5996 and $2.1153, respectively.
The Moving Average Convergence Divergence (MACD) histogram green bars are contracting, with the MACD line pointing to cross below the signal line, which would give a sell signal, while the Relative Strength Index (RSI) is pointing lower near 34 , reflecting increasing bearish momentum.
The path of least resistance for DOT is to the downside, targeting the February 6 low at $1.1020, near the S1 Pivot Point at $1.089. A drop below this zone could drop Polkadot spot below $1, targeting the S2 Pivot Point at $0.9250.
On the topside, initial resistance is located at the support-turned-resistance level at $1.2320, marked by the February 5 low, where any rebound would likely face its first serious test. A break above that barrier would then expose the 50-day EMA near $1.39.
(The technical analysis of this story was written with the help of an AI tool.)
Author
Vishal Dixit
FXStreet
Vishal Dixit holds a B.Sc. in Chemistry from Wilson College but found his true calling in the world of crypto.
