Taiko Price Prediction – Exploit Fallout Triggers Panic Selling as Bears Target $0.05

Highlights:

• Taiko plunges 13% as volume jumps 806% after a chain verification compromise sparks panic selling.
• Taiko warns that bridges are unsafe following an exploit, which triggers heavy withdrawals and accelerates investor exits.
• Technical weakness, crypto-confidence concerns, and geopolitical risks increase the likelihood of a drop toward $0.05.

Taiko (TAIKO) is down sharply intraday as the broader market remains relatively flat. When writing, Taiko was trading at $0.071, down 13.49% in the day. While the price has dropped, trading volume has shot up by 806.11% to $36.6 million. The surge in trading volumes alongside the price is an indicator of panic selling, and could see Taiko hit even lower prices in the day. 

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Taiko Exploit Drives Intraday Selloff

The key factor driving Taiko’s selloff is news of an exploit. The latest news coming from Taiko is that its chain state verification mechanism has been compromised. Taiko confirmed that all bridges are no longer safe and that investors should move to take out their funds. This has triggered a surge in withdrawals as investors rush to safety.

At the same time, the network’s compromised state makes Taiko currently unattractive as an investment. The expectation of more selloffs as users exit the network means Taiko could be headed much lower in the short term.

⚠️ Security Notice

We have confirmed a compromise of Taiko’s chain state verification mechanism. As a result, the security assumptions of all bridges deployed on Taiko can no longer be relied upon.

We are actively coordinating with the Security Council and ecosystem partners to…

— Taiko.eth 🥁 (@taikoxyz) June 22, 2026

Multi-Crypto Crisis Issues Adding to Taiko Panic Selling

Aside from the sell-off from the Taiko exploit, the token is also being affected by broader market confidence issues. For instance, MsUSD has today depegged after a reserve verifier left. This has left more than $18 million in withdrawals stuck. While this is not directly linked to Taiko, it creates a major crisis of confidence in the cryptocurrency market.

Under these circumstances, those that already have issues, such as Taiko, are taking the biggest hit as investors rush to safety. Safety in this case is likely in major stablecoins like USDT and large-cap cryptocurrencies like Bitcoin. Such a rotation could send Taiko to even lower prices in the short to medium term. 

Renewed Geopolitical Risks Add to Taiko’s Selloff

The Taiko exploit has also come at a time when geopolitical risks are flaring again. Towards the end of last week, there was growing excitement that the US and Iran were headed into real peace. However, a lot has changed over the weekend after the Iranian team walked out of the talks in Switzerland, claiming the US was not honoring its part.

Trump also made threats to the team, telling them they may not make it to Iran if they left with no deal. The renewed risk of war has seen investors start pushing into risk-off mode, awaiting more clarity on the Iran/US deal. Given that this is all happening when Taiko is already facing a crisis of confidence, more selling could be on the way. 

High interest rates make risky investments like Taiko Unattractive

Besides the war, the broader macro environment also does not favor risky bets on cryptocurrencies. A major factor driving the risk higher is the unwinding of the Yen carry trade. As Japan continues to hike rates, capital could flow out of global markets and back into Japan. This could hit cryptocurrencies more due to their high volatility. In the US, the Federal Reserve recently said inflation remains high, making a rate hike more likely. This makes investment in high-risk assets like Taiko unattractive in the short- to medium-term. 

Technical Analysis – Taiko Price Faces Downside Risk After Sharp Selloff

Taiko has been making lower highs since May, an indicator that bears are in control. Today, June 22, this selloff accelerated with high volumes. If bears sustain this momentum, Taiko could drop to prices as low as $0.05 in the short term.

However, if bulls reverse the tide, the key level to watch would be the 48-hour high of $0.098. If $0.098 is broken, a rally to $0.12 could follow. Of these two scenarios, a $0.05 correction is more likely. That’s due to the exploit and the broader market’s bearishness. 

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