WazirX Security Breach Shakes Crypto Market
A recent security breach at WazirX, one of India’s leading cryptocurrency exchanges, has sent shockwaves through the crypto market. The breach resulted in the loss of a staggering $230 million, nearly half of the exchange’s reserves. The incident, termed as a “force majeure event” by WazirX, has raised concerns not just for the exchange but also for holders of Shiba Inu (SHIB) and other affected crypto assets.
Fears of Panic Selling Grip Investors
Following an analysis by blockchain analytics firm Elliptic, it was revealed that around $235 million worth of various cryptocurrencies were lost in the breach. The impacted assets included Shiba Inu ($96.7 million), Ethereum ($52.6 million), Polygon (MATIC) ($11 million), Pepe ($7.6 million), Tether’s USDT ($5.7 million), and Floki Inu (FLOKI) ($4.7 million).
- Julio Moreno, head of research at CryptoQuant, reported a surge in asset sell-offs on various exchanges.
- Over 5 trillion SHIB tokens flooded exchanges, raising concerns about a potential sell-off wave.
Shiba Inu Price Impact
As news of the breach spread, Shiba Inu’s price saw a significant drop of almost 10%, plummeting to $0.000017. The breach also saw the hacker behind it sell off $102.1 million worth of SHIB tokens, further influencing the downward trend.
- Market makers like Wintermute intervened by purchasing SHIB from decentralized exchanges and selling it on centralized exchanges to stabilize the token’s price.
Analysis of Shiba Inu Price Movements
The selling pressure stemming from the breach has sparked concerns about the future of Shiba Inu’s price movements. Investors’ decisions in the face of panic selling could exacerbate the current downward trend.
- On the SHIB/USD daily chart, there are three main support levels to watch:
- The $0.000014 zone marks a relatively weaker support level, with a history of ending corrections and initiating recoveries.
- If this level is breached, attention will shift to the critical 6-month support at $0.000012, crucial for preventing further declines.
- The ultimate bullish threshold lies at $0.0000092, with a breach potentially leading to revisiting all-time low levels.
- If SHIB rallies, the 200-day exponential moving average (EMA) may pose a resistance point, indicating a potential reversal of the downtrend.
Hot Take: Stay Informed and Cautious
The recent security breach at WazirX and its ripple effects on Shiba Inu and other cryptocurrencies serve as a stark reminder of the volatility and risks present in the crypto market. Stay informed about market developments, exercise caution in your investment decisions, and consider the broader implications of such incidents on the overall market stability.
Sources:
– WazirX Security Breach Statement
– Elliptic Analysis of WazirX Breach
– CryptoQuant Research on Asset Sell-Offs
– Arkham On-Chain Data on SHIB Token Sales
– Market Maker Intervention Reports
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