ZKJ Token Crash: Polyhedra Network Attacked

Polyhedra Network's ZKJ token experienced extreme volatility, plummeting over 80% following a 118% surge. This dramatic price swing has left investors reeling and raises serious concerns about the project's stability. The event triggered over $97.4 million in long liquidations.

Liquidity Attack on Polyhedra Network

Polyhedra Network confirmed that a coordinated liquidity attack targeting the PancakeSwap ZKJ/KOGE V3 pool was responsible for the crash. Malicious actors strategically withdrew significant liquidity, severely impacting market depth and causing the sharp price drop.

“Several key addresses executed a sequence of large liquidity withdrawals from the PancakeSwap ZKJ/KOGE V3 pool… We suspect the aforementioned addresses coordinated a liquidity attack with an egregious malicious attempt. These actions removed critical market depth, particularly in a pool with fragile, concentrated liquidity provisioning.”

ZKJ Liquidations. Source: Coinglass

Polyhedra's Response and Market Sentiment

In response to the attack, Polyhedra Network's co-founder announced a plan to buy back ZKJ tokens to stabilize the price and restore investor confidence. Despite the significant losses, some traders remain bullish, anticipating a recovery, particularly given the buyback initiative.

ZKJ Liquidation Map. Source: Coinglass

The liquidation map shows persistent long positions, indicating ongoing bullish sentiment despite the price crash. However, sustained bearish pressure could push the price below $0.31, leading to further declines.

ZKJ Price Outlook

ZKJ is currently trading at $0.40, still recovering from its 83% drop. For a sustained recovery, ZKJ needs to reclaim the $0.69 support level and break through the $1.00 resistance. Failure to do so could signal a prolonged downturn.

ZKJ Price Analysis. Source: TradingView

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