DRIFT fluctuates 364.1% in 24 hours: Short squeeze rebound triggered by aftermath of hacking incident

Volatility Brief

In the past 24 hours, the price of DRIFT rebounded from a low of $0.034 to a high of $0.1578, and is currently at $0.0444, with an amplitude as high as 364.1%, showing a pattern of sharp pump followed by retracement. 24-hour trading volume has surged to approximately $47.94 million (CMC data), significantly higher than usual levels, with CEX/DEX turnover reaching $24.25 million (DeFiLlama).

Analysis of Cause for Volatility

- Short squeeze triggers rebound: After the hacker incident (April 1st loss of about $285 million), the market was excessively shorted, and whales bottomed in, triggering long liquidations and driving the price to pump more than 35% in a short time, resulting in a liquidity hunting style rebound.

- Surge in trading volume & recovery signals: In the past 24 hours, Drift began to implement recovery plans and stabilize the situation, while trading activity increased, supporting the price temporarily off the lows.

There have been no clear new official announcements or on-chain whale large transfers in the past 24 hours, with the main cause being a technical rebound following the event’s aftermath.

Market Views and Outlook

The mainstream sentiment in the community is cautiously bearish, considering this rebound a “dead cat bounce” rather than a real recovery, warning retail traders of the risk of chasing the pump; analysts suggest monitoring the $0.03 support level—if lost, further declines may follow, with a short-term 15% relief bounce possible but reversal signals must be confirmed.