The price of dog-themed cryptocurrency Shiba Inu (SHIB) is facing a sell-off, marked by the emergence of a death cross — a bearish technical pattern that often signals further declines.

A death cross occurs when a short-term moving average crosses below a long-term moving average. In the case of Shiba Inu, the 50-day moving average has crossed below the 200-day moving average, signaling a death cross.

Amid the current sell-off, Shiba Inu might be poised to mark its third consecutive day of losses. The most recent decline, exceeding 10%, represents the biggest single-day drop in this streak. This sharp downturn has been exacerbated by the fallout from the WazirX exploit, which has undermined confidence across the broader cryptocurrency market.

The security breach led to the unauthorized withdrawal of over $230 million worth of cryptocurrencies, including a significant amount of SHIB. This has contributed to increased selling pressure on SHIB as the stolen tokens are being liquidated on the market.

According to Lookonchain, the WazirX exploiter has begun selling SHIB, liquidating 35 billion SHIB for $618,000, and now holds 5.4 trillion SHIB worth $95.45 million.

On-chain data hints at SHIB’s potential rebound

Despite the current bearish outlook, on-chain data suggests Shiba Inu could see a recovery. Shiba Inu sits on a major support level, where a substantial amount of SHIB has been accumulated by a large number of Shiba Inu addresses.

According to IntoTheBlock data, next to where SHIB trades is a major support range, where 156 trillion SHIB were bought by 370,520 addresses in the range of $0.000008-$0.000014, at an average price of $0.00001. Buying activity is expected to pick up near this range as the 370,520 addresses that had previously bought here are likely to provide support.

At SHIB’s current trading range, a significant quantity of SHIB, 107.24 trillion SHIB, was bought in the range of $0.000014-$0.000018, raising the possibility that bulls might want to defend this zone aggressively and halt declines below $0.000014.

At the time of writing, SHIB was down 11.60% in the last 24 hours to $0.000017. According to on-chain data, Shiba Inu faces its next major resistance in the range of $0.000018-$0.00002, where 34,690 addresses currently hold 423.96 trillion SHIB.