tl;dr
Shiba Inu's Shibarium network is rebooting after a $4M security breach, with developers implementing strict upgrades and analysts predicting a price rebound for SHIB.
**Shiba Inu’s Shibarium Network Reboots After $4M Security Breach, Analysts Predict Price Rebound**
Shiba Inu’s layer-2 network, Shibarium, is taking steps to restore its Ethereum bridge following a major security breach that resulted in a $4 million exploit earlier this month. The incident, which forced an emergency shutdown, has sparked concerns within the community, but developers are working to rebuild trust through enhanced security measures and a proposed compensation plan for affected users.
### **The Exploit and Immediate Response**
The security breach occurred on September 12 when a hacker exploited vulnerabilities in Shibarium’s Ethereum-linked contracts by injecting fake data. This triggered an automatic network shutdown to mitigate damage. During the attack, approximately $4.1 million worth of ETH, SHIB, and other tokens were drained. However, developers swiftly recovered 4.6 million BONE tokens, a key component of the network’s governance and staking system.
In the aftermath, the Shiba Inu team implemented critical security upgrades, including rotating all validator keys and migrating over 100 contracts to secure wallets. These measures aim to prevent future exploits and strengthen the network’s infrastructure. While a compensation plan for affected users is still being finalized, the developers have emphasized their commitment to transparency and accountability.
### **Community Reactions and Trust-Building Efforts**
The incident has tested the resilience of the Shiba Inu ecosystem, but the team has framed the breach as a learning opportunity. “We’ve emerged stronger with enhanced safeguards,” a spokesperson stated, highlighting the proactive steps taken to fortify the network. Community members have largely acknowledged the developers’ efforts, though some remain cautious about the long-term implications of the attack.
### **Analysts Optimistic About Price Recovery**
Despite the setback, analysts are eyeing potential signs of a rebound in SHIB’s price. Community analyst Javon Marks noted a “bullish divergence” on SHIB’s two-day chart, a technical indicator often signaling a shift from bearish to bullish momentum. Marks predicts a possible 150% surge, with price targets near $0.000032—a level the token last reached in December 2024 during a broader market rally.
He also suggested that breaking above $0.000032 could pave the way for even higher gains, potentially nearing $0.000081, which is just 7 cents below SHIB’s all-time high of $0.00008845.
Other analysts, such as CW8900, have pointed to key resistance levels to watch. A breakthrough above the $0.000013 “sell wall” could push SHIB toward $0.0000155. As of now, the token trades at $0.00001253, reflecting a modest weekly gain despite a slight daily decline.
### **Market Context and Future Outlook**
With a circulating supply of 590 trillion SHIB, the project maintains a $7.3 billion market cap, underscoring its significant presence in the crypto space. While the recent exploit has introduced volatility, the combination of improved security and technical indicators has sparked cautious optimism among investors.
As Shibarium prepares to restart its Ethereum bridge, the Shiba Inu community will be closely monitoring both the network’s stability and the token’s price trajectory. For now, the focus remains on recovery, resilience, and the potential for a renewed upward trend.
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This article highlights the interplay between technical challenges and market dynamics in the crypto space, offering a balanced view of Shiba Inu’s journey amid adversity.