Shiba Inu (SHIB), the second-largest meme-coin by market capitalization, has experienced a significant drop following a recent hacking incident at India-based crypto exchange WazirX. This development has raised concerns about a potential sell-off, casting uncertainty over SHIB’s short-term prospects.
Over $100M Worth of SHIB Tokens Compromised
On July 18, SHIB’s price fell approximately 10%, reaching $0.00001720. This decline followed the identification of suspicious cryptocurrency movements worth around $235 million from wallets linked to WazirX by Web3 security firm Cyvers. Among the stolen assets were about $100 million worth of Shiba Inu.
The compromised wallet also contained $52 million in Ether (ETH), $11 million in Polygon (MATIC), $4.7 million in Floki (FLOKI), $3.2 million in Fantom (FTM), $2.8 million in Chainlink (LINK), and $2.3 million in Fetch.ai (FET). The prices of these cryptocurrencies have also declined following the security breach at WazirX.
SHIB/USDT hourly price chart. Source: TradingView
The hacker has already moved funds, including Tether (USDT), Pepe (PEPE), and Gala (GALA), into Ether using Tornado Cash, a crypto-tumbling service. There is a possibility that the remainder of the stolen cryptocurrencies, including Shiba Inu, may also be dumped for Ether.
SHIB Price Technicals Hint at Further Downside
SHIB’s price decline after the WazirX hacking incident extends its ongoing correction trend. The meme coin has dropped by over 15% after encountering resistance at the confluence of the upper trendline of its descending channel, the 50-day and 200-day exponential moving averages (EMA), and a support-turned-resistance range.
Source: X
The correction started after SHIB’s daily relative strength index (RSI) climbed to around 62, a level that has typically preceded correction periods towards the descending channel’s lower trendline. If this pattern repeats, SHIB may continue to decline, potentially falling towards $0.00001263 by the end of July — a drop of over 25% from current price levels.
Conversely, if SHIB manages to break out of the ongoing correction, it may retest its resistance confluence zone around $0.00002000.
SHIB/USDT daily price chart. Source: TradingView
The WazirX hacking incident has significantly impacted Shiba Inu’s price, leading to a substantial drop and increasing the risk of a major sell-off. As the market responds to this development, SHIB’s short-term outlook remains uncertain, with further declines possible if the current bearish trend continues.
