Shiba Inu and Dogecoin post-WazirX hack: one dog, two tales. Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— On July 18, 2024, nefarious elements hacked WazirX, India’s leading cryptocurrency exchange, resulting in the theft of over $230 million in digital assets. News of the hack impacted Shiba Inu prices due to its involvement, while Dogecoin likely went down just to give company.
The attacker exploited a vulnerability in the exchange’s multisig wallet with the hack.
The hacker stole over $100 million in SHIB, converting 5.43 trillion SHIB into 26,535 ETH, valued at approximately $92 million. SHIB’s liquidation through market makers created a FUD in the market, forcing the memecoin to suffer a price drop.
Although DOGE was not directly stolen, the incident caused market instability, indirectly affecting its value.
SHIB Price Since WazirX Hack
Expectedly, SHIB prices suffered after news of the WazirX hack hit the wire, most likely due to the hacker’s decision to steal the memecoin as part of their loot. The resulting negativity is visible in Shiba Inu’s declining Open Interest.
Shiba Inu Futures Open Interest. Source: Coinglass
The chart indicates a bearish outlook for SHIB, with a substantial decline in futures open interest from mid-March to late July. Furthermore, the open interest recorded a sharp decline since July 19, the day after the hack.
The decrease in open interest suggests waning investor confidence and reduced speculative activity. The declining open interest, alongside falling prices, reflects negative sentiment among traders.
Following the hack, the bulls tried to start a recovery rally, but the subsequent sell-off resulted in the SHIB USD pair dropping more than 8% since July 22.
SHIBUSD daily price chart with RSI. Source: Tradingview
If the downtrend continues, SHIB price could drop to the support levels near $0.0000166 and $0.0000154 before recovering.
On the other hand, a recovery rally from here would see SHIB price against the USD rise to the 50-day EMA (purple) resistance near $0.0000187. Moreover, flipping the immediate resistance could help the memecoin rally to the $0.00002 resistance level near its 100-day EMA (blue wave).
However, for that to happen, SHIB needs to exorcise the ghost of the WazirX hack. The relative strength index for SHIB remained neutral, with a score of 45.02 on the daily charts.
Dogecoin Price Shrugs Off The WazirX Monkey
DOGE price did not suffer much from the WazirX hack’s fallout, though the memecoin did plummet on the day of the attack. However, the OG canine memecoin rallied to its highest level in weeks on July 21 after a 23% rally since July 19 helped DOGE price reach $0.144.
Dogecoin price has since corrected, but DOGE bulls ensured that the token remained above the 50-day (purple) and 200-day (green) EMA support confluence.
DOGEUSD daily chart with RSI. Source: Tradingview
If the confluence support fails, the DOGE USD price risks a drop to the support levels near $0.125 and $0.111.
Conversely, a bull run from here would put the resistance levels at $0.15 and $0.17 in DOGE price’s crosshairs.
The RSI remained neutral for DOGE, with a score of 56.83 on the daily charts.
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