- WazirX Hack Impact: Shiba Inu (SHIB) experienced a 10% price drop after a $235 million hacking attack on the WazirX exchange, causing panic among investors and triggering sell-offs.
- Technical Outlook: SHIB’s ongoing correction trend may lead to a further decline within its descending channel, potentially reaching $0.00001263 by the end of July. Traders should stay informed about developments.
Shiba Inu (SHIB) has experienced a sharp price drop of 10% following a massive hacking attack on the WazirX exchange, resulting in a loss of $235 million. The breach has raised panic among investors, fueling a wave of sell-offs and further driving down prices.
The WazirX Hack and SHIB’s Plunge
On July 18, SHIB’s price fell roughly 10%, reaching $0.00001720. This decline occurred after Web3 security firm Cyvers identified the suspicious movement of cryptocurrencies valued at around $235 million from wallets linked to WazirX, including about $100 million worth of Shiba Inu.
The wallet also held significant amounts of Ether (ETH), Polygon (MATIC), Floki (FLOKI), Fantom (FTM), Chainlink (LINK), and Fetch.ai (FET). All these cryptocurrencies have declined in price following WazirX’s security breach.
The hacker behind the attack has already swapped funds into Ether using Tornado Cash, a crypto-tumbling service. The remaining stolen cryptocurrencies, including Shiba Inu, may also be dumped for Ether.
Technical Analysis and Outlook
SHIB’s price decline following the WazirX hacking incident extends its ongoing correction trend. Notably, the memecoin has dipped by over 15% after testing a resistance confluence comprising the upper trendline of its descending channel, the 50-day and 200-day exponential moving averages (EMA), and a support-turned-resistance range.
Furthermore, SHIB’s correction started after its daily relative strength index (RSI) reading climbed to around 62, a move that has lately preceded correction periods toward the descending channel’s lower trendline. That said, SHIB’s potential to continue its decline within the channel is higher if the fractal repeats.
In this bearish scenario, the memecoin may fall toward $0.00001263 by the end of July — down by over 25% from the current price levels. Conversely, a retreat from the ongoing correction may have SHIB retest its resistance confluence zone at around $0.00002000.
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