With the broader market yet to break out of the downtrend, Ethereum (ETH), Solana (SOL) and even Shiba Inu (SHIB) are all seeing significant losses. Added to the problems of SHIB owners is the “cheat” warning in OpenSea.

Warning Hodler SHIB

Through a recent tweet, Shiba Inu revealed that her investigative team is investigating the scam. Until the next updates are available, Shiba Inu has asked all Shiboshi owners to stay alert for major updates from OpenSea and their NFT team.

Furthermore, as a security measure, it is also recommended to disconnect from their NFT and lock them from their wallet.

In a later tweet, the research team further updated the status of the investigation.

At this time we report that our team has been monitoring the situation, which appears to have been an exploit due to a fabricated “phishing attack” that has affected many users using this @open sea Platform.

Here’s a broader look at the events that transpired today. https://t.co/TCR8dfCOS4

— Shib (@Shibtoken) February 20, 2022

“Currently, our team is monitoring the situation, which appears to be an exploit of a vulnerability due to the ‘phishing attack’ affecting many users of the Opensea platform.”

Even though SHIB holders are safe, they are still struggling due to market conditions.

With the charts continuing to flash red candles, SHIB is among the biggest losers in the market at the time of writing. Down more than 10% in the last 24 hours, adding to the 18.84% drop over the last 5 days. The SHIB is getting closer for now, although it’s not yet undoing February’s 58% rally.

In fact, the SHIB may soon make a local bottom as today’s decline led to the loss of the 50-day and 200-day simple moving averages as support. This is the first sign of sustained bearish momentum.

Shiba Inu price promotion | Source: TradingView

The second character comes from the Shiba Inu’s ability to enter the crush zone. With each squeeze, SHIB either recovers or recovers.

Squeeze occurs when SHIB falls regularly. Therefore, SHIB will eventually enter a tight zone with the current downtrend.

As long as it holds above $0.00002032 (critical support), investors should be fine.

The price’s failure to recover has stunned SHIB investors this month. On average, only 5,000 – 7,000 investors were active in the last 20 days. This is not surprising as the community only exists when certain altcoins perform well.

Active investors of Shiba Inu | Source: Intotheblock

Additionally, Shiba Inu’s high correlation with Bitcoin is also a hindrance to the recovery. As long as the king coin keeps slipping, it will also pull the SHIB down.

Correlation between Shiba Inu and Bitcoin | Source: Intotheblock

The next time we see SHIB investors in action, there could be a sell-off.

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