Shiba Inu’s (SHIB) price has tanked by 10.03% in the last 24 hours. Findings show that the sudden drop is linked to increased selling pressure and an unsettling development that shocked market participants.
At press time, SHIB trades at $0.000017. Here is an account of how the drop happened and what to expect from the meme coin.
Shiba Inu Gets Caught In the Crossfire
Today, June 18, a digital asset security platform, Cryverse Alert, posted that WazirX, a crypto exchange based in India, had been hacked. According to the details, the perpetrators stole $234.90 million in cryptocurrencies.
The cryptos involved in this exploit include Pepe (PEPE), Polygon (MATIC), Ethereum (ETH), and a few others. However, Shiba Inu is the most affected, as the total value of SHIB tokens moved was $102 million.
Hours after the exploit, Lookonchain notified the crypto community that the hacker had started selling the assets.
The rise in exchange inflow corroborates this. Exchange inflows measure the number of tokens sent into exchanges from external sources. When this figure increases, it means a higher number of tokens are in line to be sold.
On the other hand, a decrease suggests otherwise. According to Santiment, Shiba Inu’s exchange inflow is 39.72 billion—almost double what it was a day earlier.
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This increase indicates that the token is facing selling pressure. If this persists, SHIB may find it challenging to recover some of the losses it has had.
SHIB Price Prediction: Support at $0.000017, What’s Next?
From an on-chain perspective, the In/Out of Money Around Price (IOMAP) shows that once the dust settles, SHIB may resume its uptrend.
The IOMAP groups address based on those making money at the current price, those at the break-even point, and others losing. The larger the number of addresses at a price range, the stronger the support or resistance it provides.
According to IntoTheBlock, 5,420 addresses bought 2.60 trillion SHIB, which is around $0.000018. These investors are out of the money.
However, 8,480 addresses purchased 4.26 trillion tokens, around $0.000017, and are holding SHIB in profits. Since the latter group mentioned is higher than the former, they can provide the much-needed support SHIB needs.
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If this is the case, SHIB’s price may rise to $0.000018 once the Fear, Uncertainty, and Doubt (FUD) surrounding the project wanes.
At the same time, it is important to mention that SHIB may face resistance at $0.000018. If bulls can breach this zone, the price could rise toward $0.000020.
Also, if Bitcoin’s (BTC) price recovers, there is a high chance that Shiba In may do the same. But if this does not happen, and another round of selling pressure appears, SHIB’s next move may be a fall toward $0.000016.
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