Shiba Inu Faces Bearish Technicals Amid WazirX $235M Hack

Shiba Inu (SHIB) has been grappling with short-term bearish signals, and the recent hacking incident at WazirX—possibly by North Korea’s Lazarus Group—has only exacerbated its woes.

Technical Analysis Signals More Downside for SHIB Price

As of July 18, the second-largest memecoin was down by circa 10%, its biggest single-day drop in almost two weeks, trading for as low as $0.00001710.

The drop is part of a correction move that started two days ago, when SHIB’s price failed to breach above a resistance confluence comprising its descending channel’s upper trendline, the 50-day (red) and 200-day (blue) exponential moving averages (EMA), and a support-turned-resistance range. Since then, SHIB’s price has dropped by around 15.25%.

The memecoin’s drop further precedes its daily relative strength index (RSI) climbing to around 62—a level that has historically preceded correction moves toward the descending channel’s lower trendline.

If this fractal pattern repeats, SHIB could potentially fall towards $0.00001263 by the end of July, marking a decline of over 25% from current price levels. Conversely, a rebound from the ongoing price levels—which played resistance during the June session—will likely have SHIB retest the resistance confluence at around $0.00002000.

WazirX Hack is Boosting SHIB’s Downside Prospects

The technical struggles of SHIB were compounded by a major hacking incident at the India-based crypto exchange, WazirX. On July 18, Web3 security firm Cyvers detected suspicious movements of cryptocurrencies valued at around $235 million from wallets linked to WazirX, including about $100 million worth of Shiba Inu.

The compromised wallet also held significant amounts in other cryptocurrencies: $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). These assets have similarly suffered price declines following the security breach.

The hacker swiftly moved some of the stolen funds, including Tether (USDT), Pepe (PEPE), and Gala (GALA), into Ether using Tornado Cash, a crypto-tumbling service. This action suggests that the hacker may further liquidate the remaining stolen assets, including Shiba Inu, for Ether, potentially driving SHIB’s price down even further.