WazirX Security Breach Spurts Major Panic Sell-Off in Shiba Inu

By: Eliza Bennet

WazirX, one of India's largest cryptocurrency exchanges, recently suffered a significant security breach that resulted in the loss of $230 million worth of assets, nearly half of its reserves. The breach, which WazirX has referred to as a 'force majeure event,' has created waves in the cryptocurrency market, particularly affecting Shiba Inu (SHIB) holders.

The culprits managed to steal approximately $235 million in various cryptocurrencies, including $96.7 million in Shiba Inu, according to a blockchain analytics firm, Elliptic. Other significant losses include Ethereum worth $52.6 million and $11 million in Polygon (MATIC). The exploit has led to widespread concern among traders, affecting the price and stability of the assets involved.

In the wake of the breach, Julio Moreno, head of research at CryptoQuant, noted a significant influx of users rushing to cryptocurrency exchanges to sell off their assets. Reportedly, over 5 trillion SHIB tokens were sold off within hours, leading to a sharp decline of nearly 10% in the token's price, now trading at $0.000017. The sell-off was also exacerbated by the hacker converting approximately $102.1 million worth of SHIB into other assets, further driving the price down.

Reports indicate that market makers like Wintermute intervened to purchase SHIB on decentralized exchanges and sell it on centralized exchanges to mitigate further declines. While such measures offered some relief, the situation remains precarious.

The Shiba Inu price chart shows critical support levels that investors are watching closely. The first significant support stands at around $0.000014, which has previously acted as a rebound point in early July. The next crucial level is the six-month support at $0.000012. Breaching this could lead to a further decline, potentially pushing the token to its all-time low levels.

On the flip side, if the market sentiment shifts positively and SHIB manages a recovery, the 200-day exponential moving average (EMA) might act as a resistance level for the token. The 200-day EMA would come into play if bullish trends dominate price actions in the near future.

This intriguing yet alarming event underscores the ever-present risks in the cryptocurrency market, highlighting the need for enhanced security measures and vigilance among traders and investors.

For further insights and in-depth analysis, visit the TradingView chart on Shiba Inu price movements.