Shiba Inu price has mostly been consolidating over the last month, with an occasional spike above the range around mid-August. The price action depicts a potentially bearish pattern forming spells lower prices for SHIB price in the long run. In the meantime, over $90,000 donated to the Shiba Inu by Welly has gone missing, raising concerns among the community about the the transparency and decentralized nature of the Shibarium chain.
SHIBDAO Hack: Missing $91K Ends Up in CEX
The Shiba Inu developers unveiled the SHIB DAO on August 24, a step toward making the Shibarium blockchain more decentralized. On September 2, 37.5 ETH donated to the ShibArmy in 2022 by Shiba Inu’s official fast food chain, Welly’s, was subjected to an on-chain governance proposal on the SHIB DAO by Shytoshi Kusama.
#SHIBARMY, IMPORTANT ANNOUNCEMENT by @DavinciShib
Let’s explain the recent situation with the DAO @ everyone
– Welly’s donated 37.5 ETH to the ShibArmy in 2022, sending it to a multisig wallet of DEFENSE BREED
– The wallet was managed by the Shib Defense Breed team (not… pic.twitter.com/qqcK8iO6JR
— Maximous Shibarium (@MaximousDarwin) September 4, 2024
The voting was supposed to end on September 4, but the culprit created a new wallet and transferred the 37.5 ETH. Soon after, the Ethereum funds were split among three wallets and moved to centralized exchanges.
This is a bad start for the SHIB DAO, which promised 100% community involvement and transparency. The case has been resolved as a set of bad actors in the network and not necessarily malicious developers.
ShibDev Portal to Spur Growth in Shibarium (SHIBDAO)
However, not everything is bad news on the Shiba Inu ecosystem as a Head of Marketing Lucie announced ShibDev portal launch, which represents a new era for developers on Shibarium.
Its has been evident in the past that on-chain development can be an accurate indicator of future price movements, and currently Shibarium is not performing well.
A quick skim over key on-chain metrics on Shibarium Scan shows a struggling network. Active accounts have dropped to an all-time low, which has affected the amount of new transactions on the network.
The number of new blocks produced on the Shibarium network dropped from 17,222 on September 4 to 5,740 on September 5, an over 50% decline in less than 24 hours. The number of new contracts and new verified contracts is also on the downslope.
These metrics shed light into potential logic behind the launch of the ShibDev portal. Meanwhile, Shiba Inu price slipped by 0.9% in the last 24 hours to trade at $0.0000133.
Shiba Inu Price Analysis: 8% Bull Trap Increase Inbound
The price of SHIB currently shows its in a consolidation zone. Shiba Inu slightly broke above the top boundary but slipped back in due to Bitcoin price erratic moves.
The SHIB price action over the last one months has resulted in the formation of a potential head-and-shoulders bearish reversal pattern. The left shoulder and head have already formed and if SHIB price rises by 8% to $0.00001450, the right shoulder will have formed.
Shiba Inu price chart
Shiba Inu price prediction shows a rejection at the top boundary of the range would result in a 9% drop to $0.00001300 support, which if it fails, could sink the price further by 15% to $0.00001095 to complete the bearish reversal pattern.
Overall SHIB is a promising project with a resilient community. If the general market conditions change, Shiba Inu could avert this bearish forecast and surge higher to $0.00001600.
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