technical analysis altcoins

LEO Demand Spike Thanks To BitFinex Buyback Program, Arrests Made In Israel

Avatar Dalmas Ngetich 4 months ago
  • LEO stable but bullish
  • BitFinex’s LEO buyback program in progress

Two brothers in Israel are in custody for their involvement in 2016 BitFinex hack resulting in the loss of 120,000 BTCs. Relieving, it’s a boost for BitFinex currently buying back LEO tokens. At the time of writing, the coin is stable but bullish.

LEO Price Analysis

Fundamentals

Cryptocurrency exchange hacks are a definite step back. Not only do they instill fear among account holders and destabilize exchanges, but the more they happen, the more likely regulators are likely to step in and impose restrictive rules.

Although-for the well-being of the investor, laws introduce hurdles that may wade off investment in this liquidity conduit. Like many other exchanges, BitFinex has been pretty secure in the last three years.

Back in 2016, malicious elements made away with 120,000 BTCs, roughly $72 million at that time. Luckily, thanks to the collaborative effort of authorities, two brothers in Israel are now in police custody.

Eli and Assaf Gigi are the main perpetrators. By successfully sharing and luring victims with dubious versions of popular exchanges and wallet providers, they wiped clean their victim’s accounts. Unsettling, Eli Gigi has specialist web penetration training from the Israel Defence Forces (IDF).

However, cybersecurity experts maintain that his military training has little to do with this hack. In an email, Hartej Sawhney, co-founder of Zokyo Labs says:

“You don’t need ‘military training’ to conduct cybercrime on today’s centralized exchanges. Most recently, we have seen hackers gain access to databases holding users’ access tokens and steal their funds.”

Candlestick Arrangement

LEO BitFinex

LEO Daily Price Movement Chart

Presently, there is a buyback program in progress. BitFinex’s decision is overly bullish for LEO. From previous LEO/USD trade plans, it was clear that buyers are in control not only because of favorable fundamentals but events of the last few weeks.

Already, there is a clear double bar bull reversal pattern reacting from the first support level at $1.75. Unique in that yesterday’s snap back to the primary trend is with high participation; traders have a window to consider and even buy the dips in smaller time frames.

To safely trade, a fitting safety net should be at July 3rd low of $1.65. Notice that there is a level of undervaluation following the close of the bearish bar. By closing below the lower Bollinger Band, LEO bulls had an opportunity with yesterday a reflection of demand.

Technical Indicators

Ideally, there should be confirmation of yesterday’s upswing. That means trading volumes should pick up preferably printing above 2 million of June 2. In such a case, prices could surge above $2 or June 2019 highs triggering further participation as buyers aiming at $2.5 of May 20.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

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