Image(s) are kindly provided by Loremflickr
Our analysis of the situation
WazirX, a prominent player in India's cryptocurrency exchange arena, recently faced a major setback as it grappled with a staggering $230 million loss in a security breach. Describing the incident as a "force majeure event," the repercussions have rippled beyond the exchange itself, casting a cloud of uncertainty over holders of Shiba Inu (SHIB).
The aftermath of this breach has triggered concerns of potential panic sell-offs, as blockchain analytics firm Elliptic reported the loss of approximately $235 million in various crypto assets, including SHIB, Ethereum, Polygon, Pepe, Tether’s USDT, and Floki Inu.
This loss prompted a surge in individuals offloading their assets, with over 5 trillion SHIB tokens flooding exchanges within a few hours. This rapid sell-off wave intensified worries about the future of SHIB's price, resulting in a sharp decline of nearly 10%. The hacker behind the breach further exacerbated this trend by selling off $102.1 million worth of SHIB tokens, adding to the downtrend.
In response to this tumult, market makers like Wintermute stepped in by acquiring SHIB from decentralized exchanges (DEX) and selling it on centralized exchanges, effectively curbing a further plunge in the token's value.
Looking ahead, the imminent impact of the heightened sell-off fears and subsequent decisions of investors will play a pivotal role in determining SHIB's trajectory. The SHIB/USD daily chart highlights three crucial support lines, with emphasis on levels at $0.000014, $0.000012, and $0.0000092. These support zones serve as pivotal checkpoints in safeguarding against a more substantial decline and potentially triggering a revisit to all-time low levels.
Despite this adversity, potential scope for recovery exists, albeit amidst resistance from the 200-day exponential moving average (EMA) on the SHIB/USD chart. This resistance line looms as a critical make-or-break point, contingent upon bullish sentiments influencing SHIB’s price trajectory.
As the SHIB community navigates this storm, the future holds uncertainty, yet optimism lingers. The unfolding developments serve as a litmus test, challenging investors to weather the storm and evolve amidst the volatility of the crypto landscape.
*(Featured image from DALL-E, chart from TradingView.com)*
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Loremflickr or other free sources. They are illustrative and may not represent the content truly.
0 Comments
Please, behave!