Shiba Inu Price Drops 10% After WazirX Hack: Will SHIB Recover?

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Milcho Atanasov
20 July, 2024, 06:53
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Shiba Inu Faces Pressure Amid WazirX Hack Fallout

Recent Decline in Shiba Inu Price

Despite a general recovery in Bitcoin and the broader cryptocurrency market, Shiba Inu (SHIB) has been lagging behind. The meme coin has experienced a significant decline, dropping around 10% as it tests a new support level. This downturn is largely attributed to recent developments involving the Indian crypto exchange WazirX.

WazirX Hack and Its Impact on Shiba Inu

Earlier this week, WazirX suffered a major hack resulting in the theft of approximately $235 million worth of cryptocurrencies. Among the stolen assets, Shiba Inu tokens were the most substantial, with $96.7 million worth of SHIB taken. This was a considerable portion of the hack's haul, highlighting the token's significant trading volume on the exchange.

The theft of such a large amount of SHIB, combined with WazirX's status as a major platform for trading the token, has led to considerable market unrest. The hack instigated fear among investors, exacerbating the bearish pressure on Shiba Inu. Although the broader crypto market has shown signs of recovery, Shiba Inu’s price remained under pressure, leading to a loss of around 10% before the market's rebound began.

Hacker’s Activities and Continued Price Pressure

WazirX Freezes $3M USDT After $230M Hack

The situation for Shiba Inu worsened as the hacker began selling off the stolen tokens. According to data from the on-chain tracking platform Spot On Chain, the hacker has converted $90.2 million worth of SHIB into Ethereum (ETH). Additionally, $10.2 million in Polygon (MATIC) and $7.5 million in PEPE tokens were also converted.

In total, around $150 million worth of stolen assets have been converted to ETH, putting additional downward pressure on Shiba Inu's price. The hacker's account now holds 59,087 ETH, valued at approximately $201 million, with smaller holdings in altcoins such as CHR, CELR, and OOKI.

Current Market Position and Support Levels

Currently, Shiba Inu is attempting to retest the $0.000017 support level. Despite the broader market showing signs of recovery, SHIB has recorded a 1.03% decline in the last 24 hours. This support level has so far held steady, but continued pressure from the aftermath of the WazirX hack and the hacker’s ongoing activities could influence future price movements.

Conclusion: Navigating the Uncertainty

In conclusion, Shiba Inu's recent price decline is a direct result of the WazirX hack and subsequent activities by the hacker. The substantial amount of stolen SHIB tokens, coupled with their conversion into Ethereum, has exerted considerable pressure on the meme coin’s value. As Shiba Inu tests its support levels, investors and market watchers will need to stay attuned to developments and potential impacts on the price.