Trust Wallet ran into serious trouble after its Chrome extension was compromised, leading to losses estimated at around $7 million. The issue became more concerning after CZ acknowledged the breach and hinted that it may not have been purely external. That detail alone has kept many traders on edge.
How the Market Reacted
TWT sold off quickly once the news broke, slipping from $0.82 down to $0.76 as fear took over. Things stabilized after Trust Wallet said it would reimburse everyone affected, which helped price recover.
Right now, TWT is trading near $0.835, up about 7.8% on the day, with volume sitting close to $27.9 million. Even so, the mood across crypto isn’t confident. The Fear & Greed Index is at 27, which shows most traders are still playing it safe.
What Whales Are Doing
Large holders are clearly leaning bearish. On-chain data shows a very low long/short ratio of 0.0357, with far more shorts (253) than longs (49).
Most short positions are in profit, with average entries around $0.94. Long positions, on the other hand, are under water, with entries closer to $0.85. Overall, whale behavior suggests hesitation rather than conviction.
Levels to Watch
Price is currently moving between $0.80 and $0.83, which has become an important zone. If this area fails, a move back toward $0.76 wouldn’t be surprising. On the upside, $1.00 remains the level sellers are likely watching.
Momentum is neutral for now. The RSI around 56 doesn’t point to strength or weakness, but the MACD is starting to fade, and shorter EMAs are getting close to a bearish cross.
Takeaway
The reimbursement news helped calm things down, but concerns around trust and security haven’t gone away. As long as $0.80 holds, price may stay stable. If it breaks, downside pressure could return quickly.
⚠️ Note: This is based on market data and community discussion, not an official Binance statement. Always double-check with official sources before acting.
