The FUD caused by the hack led to a significant drop in the SHIB price, which crashed by 46% between July 17 and August 5. The mass exodus of existing holders and the reluctance of new entrants to enter exacerbated the situation as the market feared a massive sell-off caused by the hackers.
However, as the dust slowly settled and positive developments emerged around the WazirX case, SHIB began to experience an uptrend. Starting on August 5, SHIB rose 33% in just three days, only to encounter resistance at $0.000014, leading to a brief two-day consolidation.
The breakout above this level on August 11 could mark the beginning of a new bull cycle for SHIB.
SHIB price rises 36% despite subdued trading volume
The price of Shiba Inu was heavily impacted by the WazirX hack, especially since the exchange is one of the most active platforms for trading SHIB. The hack resulted in a significant drop in liquidity, with SHIB’s market volume plummeting from a high of $53 million on July 19 to around $25 million on August 5.
Trading volume is an important metric that provides insights into market liquidity and the overall reaction of investors to certain price trends. Between August 5 and 11, despite a 36% increase in SHIB price, trading volume continued to decline, falling from $25.48 million to $23.23 million.
