WazirX Hacker Stole and Sold $100 Million in SHIB

Shiba Inu (SHIB), one of the most popular meme coins in the market, has faced a dramatic price drop following a significant hack on the Indian cryptocurrency exchange WazirX. Early Thursday, a hacker exploited WazirX and managed to steal over $100 million worth of SHIB tokens. This event triggered panic among traders, leading to a massive sell-off that significantly affected SHIB’s market value.

Data from Arkham Intelligence revealed that the WazirX hacker swiftly sold off the stolen SHIB tokens. The hacker moved a large volume of SHIB to various exchanges, causing a sharp decline in its price. In total, over 5 trillion SHIB tokens were transferred, leading to an 8% decrease in SHIB’s value at that moment. As a result, the price of SHIB fell to $0.00001711, reflecting the intense selling pressure.

The hack’s impact on Shiba Inu was immediate and severe. CryptoQuant, an on-chain tracker, reported the large-scale transfer of SHIB to exchanges. This massive influx of SHIB tokens into exchange wallets usually signals a bearish trend, as it indicates a higher volume of tokens available for sale. Traders reacted to the news and the subsequent offloading of SHIB by the hacker triggered them to sell their holdings.

The decline in SHIB’s price did not stop at 8%. Following the initial drop, SHIB continued to face downward pressure. According to Cyvers, a Web3 security firm, the total value of cryptocurrencies moved during the hack was around $235 million, with SHIB being the most affected. By the end of the day, SHIB’s price had fallen by roughly 10%, reaching below $0.00001700.

SHIB had already been in a correction trend before the hack. The recent sell-off has only exacerbated this trend. SHIB’s price had been testing key resistance levels, including its 50-day and 200-day exponential moving averages (EMA). The hack pushed SHIB past these resistance points, deepening the correction.

Looking ahead, SHIB’s short-term outlook remains bearish. If the current trend continues, SHIB could potentially drop to $0.00001263 by the end of July, marking a 25% decrease from current levels. However, there is also the possibility of a reversal if SHIB can stabilize and retest its resistance levels around $0.00002000.