Shiba Inu Volume Skyrockets 145% as SHIB Price Eyes Recovery

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Shiba Inu’s trading volume soared by 145% over the past 24 hours, according to recent market data. CoinMarketCap reports that the dog-themed cryptocurrency’s trading volume now equals $1.14 billion, or 65.92 trillion SHIB. Yesterday, the SHIB price dropped more than 11%, reaching lows of $0.00001679, due to the recent hacking incident at the India-based crypto exchange WazirX.

_{Source: CoinMarketCap}

WazirX Security Breach Impacts SHIB Price

On Thursday, WazirX experienced a security breach in one of its multisig wallets, resulting in the loss of nearly $100 million in Shiba Inu (SHIB) and $52 million in Ethereum, among other assets. Following the incident, blockchain data reveals that the WazirX exploiter depleted the stolen SHIB stash. Lookonchain reports that the exploiter sold all 5.43 trillion SHIB stolen from the exchange for 26,535 ETH, worth $92 million.

Fortunately, the SHIB price did not drop significantly. Market makers such as Wintermute bought SHIB from decentralized exchanges and sold it on other exchanges for arbitrage, mitigating the price drop. The substantial increase in SHIB’s trading volume suggests investor positioning, which could be a precursor to price movements. As SHIB looks to recover, analysts and traders closely watch the price action. A sustained increase in volume combined with significant buying pressure might result in a price comeback.

Current Trading And Future Outlook

Currently, SHIB is trading down 3.43% in the last 24 hours at $0.00001713, extending its sell-off into the third consecutive day. However, there is a possibility of a relief rally as bears might soon take a breather. Analysts believe that a sustained break above the daily moving averages of 50 and 200 at $0.00001929 and $0.00001970, respectively, would be the first sign of a bullish comeback.

Conversely, if the price declines further, intermediate support is expected at $0.0000147. Holding above this support level is crucial to prevent further declines. While the SHIB price has faced recent challenges, the surge in trading volume and the market’s response to the WazirX breach suggest potential for recovery.