Shiba Inu Price Forecast As SHIB Faces Selling Pressure From 94 Billion Tokens After Poly Network Exploit

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Shiba Inu (SHIB) price is down a negligible 1%, a remarkable feat considering selling pressure from billions of SHIB tokens sold over the last 24 hours. The meme coin sustains above a crucial support level, suggesting the network’s token burn mechanism is working.

PolyNetwork Hacked, Shiba Inu, BNB, and BUSD Tokens Among Loot

In a recent announcement, the decentralized finance platform Poly Network revealed a massive exploit. The bad actors made away with 94 billion Shiba Inu tokens based on the announcement.

Dear users, we would like to inform you that Poly Network is temporarily suspending its services due to a recent attack. We are actively engaging with relevant parties and diligently assessing the extent of the affected assets. 【1/3】

— Poly Network (@PolyNetwork2) July 2, 2023

The hackers exploited the smart contract function of the cross-chain protocol Poly Network’s bridge tool. This feature facilitates users in swapping tokens from one blockchain to the next via smart contracts. To do so, it locks value on one network and then releases it on the next. With this move, they managed to mint 24 billion Binance USD (BUSD) and Binance coin (BNB) on the Metis blockchain.

We are aware of Polybridge’s ongoing situation, and are currently in contact with the PolyNetwork team to minimize the impact of the attack and further asses the situation.

In regards to the newly minted BNB and BUSD on Metis, there is no sell liquidity available.

All funds on…

— Metis🌿 (@MetisL2) July 2, 2023

Other exploits included 999 trillion SHIB tokens minted in the Heco blockchain and millions more on Avalanche, Polygon, and several other outlets. The exploiters’ wallet could have held more than $42 billion worth of loot from this attack alone.

Nevertheless, in a dramatic turn of events, the bad actors could not monetize the colossal chunk of loot because of a liquidity shortage. Metis developers confirmed this dilemma, citing a lack of “sell liquidity available” for the BNB and BUSD. Noteworthy, the Metis blockchain locked the tokens minted on the network.

All minted METIS tokens from PolyBridge have been locked on BNBChain by PolyNetwork and have limited liquidity.

— Metis🌿 (@MetisL2) July 2, 2023

94B Shiba Inu Tokens Exchanged For Ethereum

While Binance Coin and Binance USD were spared selling pressure due to a lack of liquidity, Shiba Inu did not. Reportedly, the exploiters found liquidity for the meme coin, exchanging 94 billion for 360 Ether (ETH). They also exchanged 495 million COOK tokens for 16 ETH and 15 million RFuel for 27 ETH. Lookonchain analytics platform confirmed these statistics in a post after confirming that the exploiters were moving assets to new wallets in readiness for sale.

It seems that #PolyNetwork was attacked again, hackers minted a lot of assets.

Hackers have sold 94B $SHIB for 360 $ETH, 495M $COOK for 16 $ETH and 15M $RFuel for 27 $ETH.

And we noticed that hackers are transferring assets and 1 $ETH to new wallets, most likely for sale. pic.twitter.com/a8eqbgy1Vm

— Lookonchain (@lookonchain) July 2, 2023

Amid the exploit, Binance CEO Changpeng Zhao commented in a feat to absolve his exchange from any exposure. Assuring users they were unaffected, CZ articulated that Binance does not accept deposits from the Poly Network.

This does not affect @Binance users. We do not support deposits from this network. Our security team is assisting them in its investigations though. Stay #SAFU. https://t.co/0EsD5Ux6vW

— CZ 🔶 BNB (@cz_binance) July 2, 2023

The 94 billion Shiba Inu tokens exchanged for 360 billion represent massive selling pressure. While this should have weighed heavy on SHIB, causing a slump in market value, it did not! Experts attribute this to the ongoing token burn mechanism.

According to the SHIB burn tracker, almost 19.5 million Shiba Inu tokens were burned over the last 24 hours. This represents a 151.2% increase from the past day. Notably, the network burned 1.18 SHIB tokens in a single transaction over the last hour of press time.

HOURLY SHIB UPDATE$SHIB Price: $0.00000754 (1hr -0.59% ▼ | 24hr -0.83% ▼ )
Market Cap: $4,441,223,470 (-0.92% ▼)
Total Supply: 589,349,689,672,407

TOKENS BURNT
Past hour: 1,182,138 (1 transaction)
Past 24Hrs: 19,490,231 (151.2% ▲)
Past 7 Days: 280,771,025 (-72.95% ▼)

— Shibburn (@shibburn) July 2, 2023

For clarity, token burning is a mechanism meant to reduce the supply of an asset. The tokens go to a frozen private address, rendering them unrecoverable.

Shiba Inu Forecast As SHIB Sustains Above $0.00000720

Shiba Inu (SHIB) price has resisted selling pressure from the 94 billion tokens minted for Ethereum. The token holds above the $0.00000720 support level for the twelfth day. While all signs point to the burn rate being a factor, momentum indicators also credit SHIB bulls.

The Relative Strength Index (RSI) has not tipped south, while the Awesome Oscillators (AO) histograms are green. This suggests buyer momentum, aiding in keeping Shiba Inu price afloat.

An increase in buying pressure from the current price of $0.00000757 could see Shiba Inu’s market value. The surge could see the meme coin tag the 50-day Exponential Moving Average (EMA) at $0.00000803. Further north, the Dogecoin (DOGE) killer could breach the 100-day EMA at $0.00000883 to confront the resistance level at $0.00000917.

In a highly bullish case, Shiba Inu price could continue northbound, tagging the 200-day EMA at $0.00000980. Such a move would denote a 30% increase from the current level. A decisive flip of this hurdle into support would pave the way for more gains, potentially breaking into the $0.00001000 zone.

Conversely, early profit-taking from investors who suffered losses during the June 28 dip could interrupt the rally. On this day, Shiba Inu price fell almost 10% to record an intra-day low of $0.00000702 before a 6% recovery.

The ensuing selling pressure could see Shiba Inu price break below the critical support of $0.00000702. The altcoin could extend a leg south toward the $0.00000652 support floor in a dire case. Worse still, SHIB could slide further to collect the buy-side liquidity represented by the red candlestick wick for the June 10 trading session.

Notice that the RSI was still below 50, suggesting a weak price strength. Similarly, the AO was still negative, showing that bears had the advantage. These add credence to the downside.

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