The Shiba Inu ecosystem has been at the forefront of the crypto market’s recent developments, aligning seamlessly with the broader market’s movements. Specifically noted was its behavior in the wake of Bitcoin’s price increase starting on September 26. Shiba Inu, much like its namesake, followed closely by, mirroring Bitcoin’s ascent with considerable vigor. Over a span of merely two days, Shiba Inu’s price experienced an impressive surge of over 45%. However, the burning question arises – what led to its sudden dip after such a meteoric rise? Let’s delve into the intricacies of this phenomenon.
The Surge in Shiba Inu Price
On September 25, just before the notable uptrend of Bitcoin began, Shiba Inu was trading at a modest $0.00001503. However, as Bitcoin gained momentum, Shiba Inu leveraged the support from the 50-day moving average and experienced a sharp upturn in its price, as evidenced by the hourly SHIB chart. During this rally, the price peaked at a commendable $0.00002169 before experiencing an 8% decline. Remarkably, the price found substantial support at the 20-hour moving average, cushioning its fall.
Reason for the fall?
A confluence of factors has contributed to Shiba Inu’s recent retracement. A pivotal resistance level was encountered at $0.00002230. This price level previously served as a solid support and, as a consequence, has now evolved into a formidable barrier preventing further upward movement. Compounding this resistance is the presence of the 200-day moving average hovering just above Shiba Inu’s current trading price of $0.00002013.
Moreover, the Relative Strength Index (RSI) signaling an overbought scenario adds to the complexity. For Shiba Inu to maintain its equilibrium, it might have to undergo a period of consolidation or retracement. A noteworthy support lies at $0.00001930, which could act as a bulwark against further drops in price.
Is the Shib army in Profit?
Insights provided by IntoTheBlock reveal that 57% of Shib investors remain in the profit zone at the current price levels. Conversely, 36% are submerged in losses, with an additional 7% of investors having purchased Shiba Inu at the prevailing price point. A significant factor contributing to the price dip is the existence of approximately 145.65k Shib wallets, cumulatively holding around 49.21 trillion tokens. These investors made their purchases in the price bracket of $0.000024 to $0.000030, eagerly awaiting their moment to cross into profitability.
Developments Boosting Rise
The Shiba Inu ecosystem has seen a flurry of developmental activities recently. Notable among these is the significant upgrade and hard fork of Shibarium, alongside the launch of the K9 partner mainnet. Additionally, substantial interest from whales, demonstrated through the purchase and movement of large volumes of Shib tokens, has injected further momentum into the ecosystem. These events have collectively contributed to an uptick in the overall price and valuations within the Shiba Inu space. According to DeFi Daily News, there has been a pronounced increase in the total value locked within the Shibarium network, amounting to $3.98 million at the time of writing.
What to Expect?
Given the fervent dedication of the project team, alongside the plethora of developments and an ascending shib burn rate, Shiba Inu’s trajectory seems poised for growth. It’s also worthwhile to note the team’s efforts in launching a stablecoin on Shibarium, SHI. Such advancements bolster confidence within the community, promising not just an increase in the token’s popularity but also in its price and utility across the ecosystem.
In Conclusion, as we traverse the dynamic landscape of the Shiba Inu ecosystem, it’s evident that the dance of numbers goes beyond mere speculation. From technical analyses to community-driven endeavors, each element intricately weaves into the fabric of what could be termed as a vibrant market tapestry. As the Shib Army marches forward, bolstered by developments and collective hope, the horizon seems imbued with promises of innovation. Embracing the vicissitudes, the narrative of Shiba Inu unfolds as a testament to the spirited chase of digital ubiquity, a chase speckled with challenges, triumphs, and an unwavering zeal to redefine the contours of the crypto domain.
