As the broader market continues its downward journey, it has spared no one except XRP as Ethereum, Solana, and even Shiba Inu are recording significant losses. Adding on to SHIB holders’ troubles is Ethereum’s OpenSea “fraud” warning from the development team.
Shiba Inu holders warned!
Via a recent tweet, the SHIB team revealed that their investigation team is looking into the fraud. Until further updates, the Shiba Inu team has asked all its Shiboshi holders to remain alert for any major update from OpenSea and the team working with their NFTs.
Furthermore, it also recommended as a safety measure to revoke the connection with their NFTs and disconnect them from their wallets.
In a subsequent tweet, the team further expanded on the status of the investigation.
At this time we are reporting that our team has been monitoring the situation, in what appeared to be an exploit due to a sourced ‘Phishing Attack’, that has affected many users utilizing the @opensea platform.
— Shib (@Shibtoken) February 20, 2022
Now, even though SHIB holders might be safe from the fraud, they happen to be suffering in their own way thanks to the condition of the market.
With the charts continuing to flash red candles, Shiba Inu seemed to be among the market’s biggest losers at the time of writing. Down by over 10% in the last 24 hours, the altcoin has added to the 18.84% drop over the last 5 days. Now, although it hasn’t invalidated the 58% rally of February, it’s getting closer.
In fact, it might touch the local bottoms soon since today’s plunge resulted in the meme coin losing the 50 and 200-day Simple Moving Averages as support. This is the first sign of bearish momentum going forward.
The second indication comes from the active squeeze Shiba Inu is potentially going to enter. At every squeeze release, SHIB has pictured a rise or recovery.
It is only during the active squeeze when SHIB usually drops. Thus, with the current bullishness receding, SHIB will eventually enter the squeeze, following which, it could observe a drop.
As long as it keeps above $0.00002032 (critical support), investors will be fine.
The lack of a price rise and rally has already quietened down investors this month. On average, just 5k – 7k investors have been active in the last 20 days. This isn’t surprising since the community only looks alive when the altcoin is doing well.
Additionally, Shiba Inu’s high correlation to Bitcoin is also a hindrance to recovery. As long as the king coin continues to slip, it will drag SHIB down as well.
Maybe, the next time we see SHIB investors active, it could be during a sell-off.