- The Shiba Inu (SHIB) price has lagged recently despite Bitcoin and the broader crypto market experiencing some recovery.
- This decline in SHIB price is linked to key developments that have negatively impacted its value.
- A significant event causing this drop was the hacking of the Indian crypto exchange WazirX, which resulted in the theft of numerous cryptocurrencies.
Discover how recent events in the cryptocurrency space have pressured Shiba Inu’s value and what this means for investors moving forward.
WazirX Hack Leads to Shiba Inu Price Decline
Earlier this week, the Indian cryptocurrency exchange WazirX was compromised, resulting in a loss of approximately $235 million. This breach predominantly affected several major cryptocurrencies including Polygon (MATIC) and Ethereum (ETH), with the highest loss seen in Shiba Inu (SHIB) tokens, amounting to $96.7 million.
Impact of WazirX Exploit on Shiba Inu
Shiba Inu, due to its popularity among WazirX users, saw its price drop significantly following the breach. The fear and uncertainty from investors, concerned about the aftermath of such a significant exploit, precipitated a sell-off in SHIB tokens, leading to a 10% drop in SHIB price, testing a new support level amidst broader market recovery.
SHIB Price Pressured by Continued Liquidation
Post-hack, the aftermath continues to weigh heavily on SHIB’s price. The hacker(s) converted a substantial portion of the stolen SHIB tokens into Ethereum. As of now, $90.2 million worth of Shiba Inu tokens have been exchanged for Ethereum, exerting notable selling pressure on SHIB’s price.
Consequences and Market Response
Data from on-chain analysis platform Spot On Chain indicates the hackers have so far converted around $150 million worth of various cryptocurrencies, including $90.2 million in SHIB tokens, into Ethereum. Currently, the exploiter account holds around 59,087 ETH valued at $201 million, while also maintaining smaller balances in other altcoins such as CHR, CELR, and OOKI.
Future Prospects for Shiba Inu
Despite these significant sales, SHIB is working to retest its $0.000017 support level. In the last 24 hours, the Shiba Inu price showed a modest decline of 1.03%, but the support level has been resilient. The continued conversion of SHIB into ETH by the hackers threatens further downside pressure, but the overall market sentiment and responses from exchanges will be pivotal in determining SHIB’s near-term outlook.
Conclusion
The WazirX hack has certainly imposed a heavy burden on Shiba Inu’s price, creating a climate of uncertainty among investors. However, the resilience of the $0.000017 support level provides some optimism. Moving forward, the crypto community will closely watch how the situation unfolds, especially the market’s ability to absorb remaining sell pressures from the hacked funds.
