- Shibarium exploit drained $2.4 million, rattling Shiba Inu investor confidence.
- Shiba Inu (SHIB) recently tested its 200-day simple moving average support after a 13% two-day fall.
- Buyers dominate Shiba Inu futures, suggesting a possible breakout above $0.000017.
Shiba Inu has been in the market spotlight following a sudden downturn triggered by a major exploit on its Shibarium network.
The breach shook investor confidence, pushed the memecoin’s price lower, and raised concerns within the community about the security of one of the most prominent meme-coin ecosystems.
At the same time, traders are closely watching technical indicators that suggest a breakout could be possible if key levels hold.
Shibarium hack: what happened?
The Shibarium hack, which drained roughly $2.4 million from the Shibarium bridge, was carried out via a carefully executed flash loan attack.
By borrowing millions of Bone ShibaSwap tokens, the attacker temporarily gained majority control over validator keys and signed malicious states, extracting funds from the network.
Tikkala Research, a blockchain security firm, later confirmed that the exploit extended further: compromised signer keys tied to ShibaSwap pushed total losses toward $2.8 million.
Developers moved quickly to limit further damage, freezing staking and unstaking functions and transferring funds to a multisignature hardware wallet.
Security experts from PeckShield, Hexens, and Seal911 joined the investigation, while the Shiba Inu team reached out to the attacker with an unusual on-chain bounty.
The bounty offered five Ether in return for the stolen assets — a proposal that remained open for thirty days but began to lose momentum after the first week.
Shiba Inu lead ambassador Shytoshi Kusama also broke weeks of silence to reassure the community that he remained actively involved.
Dismissing rumors of absence as “nonsensical,” Kusama said he was working with lead developer Kaal Dhairya and others in what he described as a “war room.” He acknowledged the complexity of the situation and asked for patience as the team coordinated with law enforcement and security specialists on next steps.
Market reaction
The impact was immediate. Shiba Inu fell more than 13% within 48 hours, sliding from a September high of $0.00001484 to an intraday low of $0.00001297.
That decline tested the token’s 200-day simple moving average — a critical support zone now being watched closely by traders.
Other ecosystem-related tokens also felt the hit. BONE lost more than a third of its value in a matter of days, while KNINE (K9 Finance) slid roughly 10%.
Shiba Inu price outlook
Despite the hack and the uncertainty that followed, market sentiment around Shiba Inu has not completely collapsed.
Derivatives data indicate that buyers still dominate futures markets, reflecting resilience even as the spot price hovers near support.
Technically, SHIB has tightened into a symmetrical triangle pattern, consolidating around $0.00001316.
A decisive breakout above $0.000017 could open the door to a move toward $0.00005, although any such advance will depend on whether trust in the network can be restored.