Key Notes

• Shibarium confirms plans to refund $4M exploit victims and restart its Ethereum bridge.
• SHIB price trades in a narrowing symmetrical triangle, signaling a potential breakout soon.
• RSI and MACD show neutral momentum, awaiting confirmation of direction.

Shiba Inu’s layer-2 network, Shibarium, has entered a crucial recovery phase following a $4 million exploit that forced an emergency shutdown last month.

While the development team races to restore operations and reimburse affected users, SHIB’s price continues to consolidate, down 23% in the past year.

Shibarium Prepares Refunds After $4 Million Exploit

The Shibarium developers confirmed Thursday that they are preparing to restart the Ethereum bridge and compensate victims of the recent security breach.

A detailed post-mortem investigation revealed that all validator keys had been rotated, and over 100 ecosystem contracts had been migrated to secure wallets. Additionally, 4.6 million BONE tokens, worth over $2 million, were successfully recovered from the attacker’s contract.

The exploit, which occurred on September 12, stemmed from a malicious submission of fake data to Shibarium’s Ethereum-linked contracts, prompting the system to shut down automatically.

In a parallel attempt, the attacker staked millions of dollars’ worth of BONE tokens to try to seize network control. The breach resulted in the theft of approximately $4.1 million in various assets, including ETH and SHIB.

Although Shibarium’s lead developer, Kaal Dhairya, had offered the hacker a 50 ETH bounty for returning the funds, negotiations failed, and the stolen tokens have since been moved.

SHIB Technical Outlook: Triangle Pattern Nears Resolution

The daily Shiba Inu chart shows the token trading within a symmetrical triangle, a pattern that often precedes a decisive move.

The price is hovering around $0.0000127, with the upper resistance trendline near $0.0000135 and lower support around $0.0000113. The tightening range suggests that volatility compression is underway, and a breakout could occur in the coming weeks.

SHIB price action inside a narrowing triangle | Source: TradingView

Bollinger Bands have narrowed significantly, further supporting this view. A break above the upper band at $0.0000135 could signal the start of a bullish run toward $0.0000160, followed by $0.0000185 if momentum strengthens.

Conversely, a drop below $0.0000113 may open the door to a bearish retest of $0.0000100, or even $0.0000085 if selling pressure accelerates.

Indicators Signal Neutral Momentum

The Relative Strength Index (RSI) stands around 53, showing neutral market conditions without clear overbought or oversold pressure. Meanwhile, the MACD line has just crossed slightly above the signal line, hinting at a mild bullish bias.

The Chaikin Money Flow (CMF) reads close to zero, indicating limited capital inflows, while the Balance of Power (BoP) remains slightly positive but weak, suggesting that buyers are not yet dominant.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.

Parth Dubey on LinkedIn