Shiba Inu price falls amid WazirX exchange hack fallout

The Shiba Inu (CRYPTO:SHIB) price has recently faced a significant decline, dropping around 10% to $0.000017, despite the broader cryptocurrency market showing signs of recovery.

This sharp fall in SHIB's value is primarily attributed to recent events surrounding the WazirX exchange hack.

Earlier this week, WazirX, a major Indian crypto exchange, was breached for approximately $235 million.

Among the stolen assets, Shiba Inu tokens were notably prominent, with around $96.7 million worth of SHIB being pilfered.

This is particularly significant given Shiba Inu's high trading volume on the platform.

The hack has had a profound impact on SHIB's price.

The theft triggered fear among investors, exacerbating the bearish sentiment in the market.

Although the broader crypto market has rebounded, Shiba Inu's price struggled to recover, suffering a 10% drop during the market's initial response.

Adding to the pressure on SHIB is the fact that the hacker(s) have begun selling the stolen tokens.

On-chain data from Spot On Chain reveals that $90.2 million worth of SHIB has been converted into Ethereum (CRYPTO:ETH), along with $10.2 million in Polygon (CRYPTO:MATIC) and $7.5 million in PEPE (CRYPTO:PEPE) tokens.

This mass conversion of SHIB into ETH has put additional downward pressure on the token's price.

Currently, Shiba Inu is testing a crucial support level at $0.000017.

Despite a minor decline of 1.03% in the last 24 hours, this support has held steady so far.

However, the ongoing market conditions and the aftermath of the hack continue to pose challenges for SHIB’s price recovery and future performance.