Shiba Inu (SHIB), the second largest Mimecoin by market cap, recently faced significant losses after being implicated in the hacking of India-based cryptocurrency exchange WazirX. This disturbing news has cast a shadow over SHIB’s short-term outlook, adding to concerns about a potential sell-off.
$100 million worth of SHIB tokens were compromised.
On July 18, SHIB’s price fell by around 10% to $0.00001720. The drop came after Web3 security firm Cyvers detected suspicious movement of around $235 million worth of cryptocurrency from wallets linked to WazirX, including around $100 million worth of Shiba Inu.
The wallet also held $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). All of these cryptocurrencies saw their prices drop following the WazirX breach.
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The hacker has already used Tornado Cash (Tornado Cash) to convert funds consisting of Tether (USDT), Pepe (PEPE), and Gala (GALA) into Ether. Tornado Cash is a crypto tumbling service. It is also possible to dump the rest of the stolen cryptocurrencies, including Shiba Inu, into Ether.
SHIB price technical indicators suggest further decline
The ongoing correction trend has been further amplified with the SHIB price dropping following the WazirX hack.
In particular, Mimecoin fell more than 15% after testing the upper trendline of the descending channel, the 50-day (red) and 200-day (blue) exponential moving averages (EMAs), and a resistance confluence that included the range where support turned into resistance.
Moreover, the SHIB correction started after the daily Relative Strength Index (RSI) rose to around 62, which preceded the recent correction period towards the lower trendline of the downtrend channel.
However, if the fractal repeats, it is more likely that SHIB will continue to decline within the channel. In this bearish scenario, Mimecoin could drop to $0.00001263 by the end of July. That would be a drop of more than 25% from the current price level.
Conversely, if there is a pullback from the ongoing correction, SHIB is likely to retest the resistance consolidation zone around $0.00002000.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.