Shiba Inu price has mostly been consolidating over the last month, with an occasional spike above the range around mid-August. The price action depicts a potentially bearish pattern forming spells lower prices for SHIB price in the long run. In the meantime, over $90,000 donated to the Shiba Inu by Welly has gone missing, raising concerns among the community about the the transparency and decentralized nature of the Shibarium chain.
SHIBDAO Hack: Missing $91K Ends Up in CEX
The Shiba Inu developers unveiled the SHIB DAO on August 24, a step toward making the Shibarium blockchain more decentralized. On September 2, 37.5 ETH donated to the ShibArmy in 2022 by Shiba Inu’s official fast food chain, Welly’s, was subjected to an on-chain governance proposal on the SHIB DAO by Shytoshi Kusama.
📢 #SHIBARMY, IMPORTANT ANNOUNCEMENT by @DavinciShib 📢
Let’s explain the recent situation with the DAO @ everyone
– Welly’s donated 37.5 ETH to the ShibArmy in 2022, sending it to a multisig wallet of DEFENSE BREED
– The wallet was managed by the Shib Defense Breed team (not… pic.twitter.com/qqcK8iO6JR— Maximous 🐕🍖 Shibarium (@MaximousDarwin) September 4, 2024
The voting was supposed to end on September 4, but the culprit created a new wallet and transferred the 37.5 ETH. Soon after, the Ethereum funds were split among three wallets and moved to centralized exchanges.
This is a bad start for the SHIB DAO, which promised 100% community involvement and transparency. The case has been resolved as a set of bad actors in the network and not necessarily malicious developers.
ShibDev Portal to Spur Growth in Shibarium (SHIBDAO)
However, not everything is bad news on the Shiba Inu ecosystem as a Head of Marketing Lucie announced ShibDev portal launch, which represents a new era for developers on Shibarium.
Its has been evident in the past that on-chain development can be an accurate indicator of future price movements, and currently Shibarium is not performing well.
A quick skim over key on-chain metrics on Shibarium Scan shows a struggling network. Active accounts have dropped to an all-time low, which has affected the amount of new transactions on the network.
The number of new blocks produced on the Shibarium network dropped from 17,222 on September 4 to 5,740 on September 5, an over 50% decline in less than 24 hours. The number of new contracts and new verified contracts is also on the downslope.
These metrics shed light into potential logic behind the launch of the ShibDev portal. Meanwhile, Shiba Inu price slipped by 0.9% in the last 24 hours to trade at $0.0000133.
Shiba Inu Price Analysis: 8% Bull Trap Increase Inbound
The price of SHIB currently shows its in a consolidation zone. Shiba Inu slightly broke above the top boundary but slipped back in due to Bitcoin price erratic moves.
The SHIB price action over the last one months has resulted in the formation of a potential head-and-shoulders bearish reversal pattern. The left shoulder and head have already formed and if SHIB price rises by 8% to $0.00001450, the right shoulder will have formed.
Shiba Inu price prediction shows a rejection at the top boundary of the range would result in a 9% drop to $0.00001300 support, which if it fails, could sink the price further by 15% to $0.00001095 to complete the bearish reversal pattern.
Overall SHIB is a promising project with a resilient community. If the general market conditions change, Shiba Inu could avert this bearish forecast and surge higher to $0.00001600.
Frequently Asked Questions (FAQs)
On September 2, 37.5 ETH, which was donated to the Shiba Inu community by the fast food chain Welly’s, was mishandled. The funds were subjected to an on-chain governance proposal on the SHIB DAO, and were eventually siphoned off into new wallets and transferred to centralized exchanges. This event raised serious concerns about the security and transparency of the Shibarium chain.
Following the exploit, the Shiba Inu price experienced a slight decline, with the price slipping by 0.9% to trade at $0.0000133. The incident has also contributed to a bearish sentiment around SHIB, as it highlights potential vulnerabilities in the ecosystem.
While current indicators suggest a bearish trend, Shiba Inu remains a promising project with a strong community. If market conditions improve or if the ShibDev portal and other positive developments gain traction, SHIB could potentially overcome the bearish forecast and rise to higher levels, such as $0.00001600.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/more-pain-for-shiba-inu-price-amid-90k-shibdao-exploit/
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