- Shiba Inu’s price falls 10% after $100 million worth of tokens were implicated in a hack.
- WazirX breach sees substantial cryptocurrency movements, sparking fears of further price drops.
- Technical indicators suggest potential for more declines in SHIB’s value.
Shiba Inu, the well-known memecoin, experienced a sharp decrease in value following its involvement in a hacking incident at the WazirX crypto exchange based in India. On July 18, the price of Shiba Inu dropped by about 10%, a decline triggered by the unsettling news of a major security breach.
Cyvers, a Web3 security firm, reported suspicious activities involving approximately $235 million worth of cryptocurrencies, which included a significant amount of Shiba Inu tokens valued at around $100 million. This revelation has led to increased market volatility and concerns over potential sell-offs that could depress SHIB’s price further.
The breach not only affected Shiba Inu but also other major cryptocurrencies stored in the compromised wallets. These included $52 million in Ether, as well as notable amounts of Polygon, Floki, Fantom, Chainlink, and Fetch.ai—all of which saw price declines following the breach.
In the aftermath of the hack, the hacker reportedly converted a portion of the stolen assets into Ether using Tornado Cash, a cryptocurrency tumbling service. This move has heightened concerns that the remaining stolen cryptocurrencies, including Shiba Inu, might also be liquidated, potentially exacerbating the downward pressure on their prices.
Technical Outlook for Shiba Inu
From a technical perspective, Shiba Inu’s market behavior remains bearish. The memecoin’s price trajectory showed it testing a resistance zone before the incident, only to fall significantly afterward. This pattern suggests that SHIB could continue its downward trend within the established trading channel.
If this bearish pattern holds, there is potential for Shiba Inu to decline further, possibly reaching lower levels by the end of July. Conversely, any recovery effort could see SHIB attempting to climb back to its previous resistance levels.
