- Shibaswap Key Leak drains $2.8M in SHIB, sparking panic among investors.
- Analysts spot potential rebound near $0.0000119 despite bearish market pressure.
- Investor confidence remains fragile as SHIB trades within a narrow consolidation range.
Panic has gripped Shiba Inu holders after a new security alert shook the community. Tikala Security reported that several signer keys on Shibaswap were compromised, resulting in a $2.8 million loss. The attack exposed serious vulnerabilities in the platform’s root chain manager contract, raising fresh concerns about the safety of user funds. Many holders now fear this breach could push the original meme coin into deeper market trouble.
Security Breach Sparks Community Fear
On-chain data from Etherscan revealed that the attacker withdrew SHIB tokens several times using legitimate Merkle leaf exit requests. Each request came from a root hash signed by ten different addresses. That means the attacker had full control over private signer keys, allowing them to approve actions, move tokens, and interact with smart contracts.
Tikala Security’s investigation found that the exit() function in the Shibaswap root chain manager contract allowed the attacker to manipulate the root hash. This loophole gave the intruder control to drain nearly $3 million in SHIB. The revelation sent shockwaves through the community as investors questioned whether more exploits could follow. The security flaw comes at a time when Shiba Inu faces a challenging year.
SHIB’s price performance has remained weak, with the token down 45% year-to-date. Trading activity has dropped sharply, reflecting growing caution among investors. While Shiba Inu still holds a $6 billion market cap, daily volume has shrunk to $150 million—far less than rival meme coins like PEPE, which records $400 million despite a smaller market cap.
Technical Setup Suggests a Make-or-Break Moment
Despite the fear, some analysts see a potential turnaround brewing. They argue that SHIB is currently sitting in a major demand zone, hinting at a possible rebound. The daily SHIB/USDT chart shows consolidation between $0.0000098 and $0.0000108. Historically, this range has triggered strong upward moves. Recent price action indicates possible accumulation by buyers seeking value at these lower levels. However, SHIB’s short-term structure remains bearish, as a descending trendline continues to cap gains.
For any recovery to take hold, the token must close above the $0.0000119 resistance level. A confirmed breakout above that area could trigger momentum toward $0.0000176, the next key supply zone. Analysts believe this could signal the end of SHIB’s prolonged downtrend and potentially revive investor optimism. Until then, SHIB remains in a fragile range, vulnerable to market shocks and further technical pressure.
The Shibaswap breach has exposed the risks tied to decentralized ecosystems, especially when private keys fall into the wrong hands. As the community waits for developer updates, confidence remains shaky. The coming days may decide whether Shiba Inu can recover from this blow or sink deeper into uncertainty.
