Shiba Inu slips 6.99% after Shibarium breach

SHIB fell 6.99% as Shibarium’s $4 million breach kept traders wary.

Shiba Inu (SHIB) is trading at $0.0000047 after a 6.99% daily drop, and the token is still below the moving averages that traders use to judge short-term direction. The pressure is coming from two sides: old security scars on Shibarium and fresh selling that pushed more than 25 billion SHIB back onto exchanges.

ETF approval gave SHIB a headline, not a rescue

The most interesting twist in this story is that SHIB got a regulatory tailwind at the same time it was getting hit on price. Shiba Inu’s official X account said a multi-asset crypto ETF had been approved and that SHIB could be one of the eligible assets, which would give the token a cleaner path into regulated portfolios if the product reaches market in a meaningful way.

That matters because ETF inclusion changes the conversation from meme-driven speculation to potential institutional access. It does not erase the fact that SHIB still trades like a highly reactive retail asset, but it does create a possible bridge to a different kind of buyer.

The catch is simple: a headline about eligibility does less for price than actual flows. Until an ETF launches with real demand, SHIB still trades on sentiment, liquidity, and whether traders think the token can hold support.

• ETF approval may widen access for regulated investors
• Eligibility does not guarantee SHIB will receive flows
• Price action still depends on market confidence and liquidity

Shibarium’s breach still hangs over the token

The bigger problem is trust. Last year, Shibarium suffered a security breach that led to more than $4 million being stolen, and that number keeps showing up in market commentary because it changed how traders talk about the chain. Even when SHIB gets a positive headline, the breach reminder pulls the focus back to protocol safety.

That matters for a token with a huge retail following. Memecoins already trade on emotion, and when a project’s Layer-2 network has a public security failure, the market tends to price in a discount for a long time. The damage is not just financial; it also changes how quickly traders are willing to believe the next bullish narrative.

“If sentiment improves and SHIB can hold its support levels, a return of institutional interest could spark a meaningful recovery.” — Viktoras Karapetjanc, Traders Union

Karapetjanc’s point is useful because it connects the two forces in play. The ETF story could help over the long run, but the market is still staring at the breach and asking whether the ecosystem can prove it is safer now than it was then.

The chart is still telling a bearish story

On the technical side, SHIB is not giving traders many reasons to fight the trend. The token is below its 20-period moving average at $0.00000488 and its 50-period moving average at $0.00000494 on the hourly chart. It is also trading well under the 200-period daily moving average at $0.00000654, which tells you the broader trend remains weak.

Momentum readings are even harsher. The daily RSI sits at 22.2, which is deep in oversold territory, but oversold does not mean a bounce is guaranteed. It often means the market has already sold hard and can keep doing so if there is no fresh catalyst.

• 20-period moving average: $0.00000488
• 50-period moving average: $0.00000494
• 200-period daily moving average: $0.00000654
• Immediate resistance: $0.00000487
• Expected 1 to 2 day range: $0.00000461 to $0.00000493

That range matters because it gives traders a map. A clean move above $0.00000487 would be the first sign that buyers are trying to wrest control back. A drop below $0.00000461 would tell the market that the current support is giving way and that the recent slide may continue.

For context, this kind of setup is common in tokens that trade heavily on sentiment. The chart can look washed out for days, then snap higher on a single catalyst. But right now, the catalyst stack is mixed: one bullish regulatory headline, one old security wound, and one fresh wave of exchange inflows.

SHIB is competing with more than just its own past

There is also a quieter problem in the background: competition. SHIB has lost some of the memecoin spotlight to MemeCore, and that matters because memecoin traders are often chasing the newest liquid story rather than the most established brand. When attention rotates, older tokens can lose volume fast.

On-chain activity adds another layer. More than 25 billion SHIB tokens were recently sent back to exchanges, which increases the amount of supply that can be sold. In a market already leaning bearish, that kind of flow usually works against price recovery.

Here is the practical comparison traders care about:

• ETF approval could create a longer-term demand channel
• The Shibarium breach still weighs on trust
• Exchange inflows increase the odds of near-term selling
• Technical signals remain below key trend levels

That mix explains why the market is treating SHIB as a story with two timelines. The long-term case depends on whether regulated access and ecosystem repair can rebuild credibility. The short-term case depends on whether buyers can defend support around $0.00000461 and $0.00000487 without another wave of selling.

SHIB now needs proof, not headlines

SHIB’s next move will probably come down to one question: can the token hold its current support long enough for the ETF narrative to matter? If it cannot, the breach-era distrust and the exchange inflows will keep dominating the tape.

For traders, the actionable takeaway is straightforward. Watch $0.00000461 on the downside and $0.00000487 on the upside. If SHIB closes above resistance with volume, the ETF story gets a chance to matter. If it loses support, the market is likely telling you that the old security damage is still winning the argument.

Either way, this is no longer just a meme coin headline. It is a test of whether SHIB can turn a regulatory opening into real demand while carrying the weight of a $4 million breach that the market has not forgotten.