- Shiba Inu has witnessed a significant increase in its trading volume, skyrocketing by 145% over the past 24 hours.
- This remarkable surge is primarily attributed to the latest hacking incident at the Indian-based crypto exchange WazirX, which led to substantial financial losses.
- Lookonchain reports indicate that the WazirX exploiter has sold the stolen Shiba Inu tokens, minimizing the impact on the token’s price.
Discover the latest developments in Shiba Inu’s trading volume surge following the WazirX security breach, and what it means for investors and the crypto market.
WazirX Hack Sparks a Surge in Shiba Inu’s Trading Volume
Recent market data from CoinMarketCap reveals a dramatic increase in Shiba Inu’s trading volume, which soared by 145% within the past 24 hours. This surge translates to a staggering $1.14 billion or 65.92 trillion SHIB tokens. Notably, this volume spike occurred despite the fact that SHIB experienced an 11% price drop, reaching new lows of $0.00001679. The price dip is closely tied to a security breach at the India-based crypto exchange WazirX, where the exchange lost nearly $100 million in Shiba Inu tokens and $52 million in Ethereum, among other assets.
Impact of the WazirX Breach on Shiba Inu’s Trading Activity
The breach at WazirX was executed via a multisignature wallet compromise, significantly impacting the exchange’s holdings. Following the hack, blockchain analysis by Lookonchain reported that the hacker liquidated the entire stolen stash of 5.43 trillion SHIB tokens for 26,535 ETH, worth approximately $92 million. Despite the magnitude of the hack, the market reaction to SHIB was relatively subdued. This can be attributed to market makers like Wintermute, who bought SHIB from decentralized exchanges (DEX) and sold it on centralized exchanges for arbitrage purposes, mitigating a more severe price collapse.
Outlook for Shiba Inu’s Price Recovery Post-Hack
The significant increase in trading volumes can often be seen as a signal of investor positioning, which may foreshadow potential price movements. In the wake of the WazirX hack, analysts and traders are closely monitoring SHIB’s price action. A substantial and sustained increase in volume, coupled with robust buying pressure, could pave the way for a price recovery. Despite the current downtrend, where SHIB is trading at $0.00001713, there is potential for a relief rally if selling pressure eases. For a bullish momentum to regain ground, SHIB needs to break above the daily moving averages of 50 and 200 at $0.00001929 and $0.00001970 respectively. Conversely, intermediate support levels are expected around $0.0000147, which is crucial to prevent further declines.
Conclusion
In conclusion, the WazirX hack has undeniably disrupted the Shiba Inu market, leading to a notable but not catastrophic decline in its price. The surge in trading volume provides a glimmer of hope for investors, signaling possible price stabilization and recovery. As the market watches closely, breaking above key resistance levels remains essential for a bullish turnaround, while maintaining support levels is critical to hindering further depreciation. Investors are advised to stay alert to market signals and developments as SHIB navigates through this challenging period.
