Caution among investors when dealing with meme-based cryptocurrencies
Shiba Inu (SHIB) is a meme coin based on Ethereum, inspired by Dogecoin, and was launched in 2020 by an anonymous developer named Ryoshi. Unlike Bitcoin, which is designed to be scarce, SHIB intentionally has an abundant supply of one quadrillion tokens. The Shiba Inu ecosystem also supports initiatives like an NFT art incubator and the creation of a decentralized exchange known as Shibaswap.
As with many other cryptocurrencies, Shiba Inu is known for its high volatility and significant price swings. It’s worth noting that SHIB attracted a lot of attention in 2021, experiencing rapid price surges and drawing in speculative traders and meme enthusiasts.
Today, the perception of SHIB has evolved, with its growing community of supporters helping it transition from a speculative meme coin to a more established digital asset. The token’s adoption by major exchanges like Binance and Coinbase has further solidified its legitimacy among larger investors. However, caution is advised when investing in meme coins like SHIB due to their reliance on speculation and social media trends, along with their often lacking a clear use case or fundamental backing. Investors should always perform extensive research and understand the inherent risks involved.
SHIB addresses exceed one million in number
Shiba Inu (SHIB) has seen its market cap decline over the past two weeks. However, according to IntoTheBlock, a well-known blockchain data provider, SHIB has experienced a notable increase in large transactions valued at $100,000 or more. IntoTheBlock reported $29.24 million worth of large SHIB transactions in the last 24 hours, representing approximately 3.75 trillion SHIB tokens.
This increase in large transactions signifies renewed investor enthusiasm and confidence in the SHIB community, indicating a positive outlook for the future of the project.
The number of new SHIB addresses continues to rise, with over one million addresses now registered in the Shibarium ecosystem, marking a key milestone.
While this growing activity and community support are positives for SHIB, it’s important to remember that SHIB remains highly volatile, and broader cryptocurrency market conditions will still play a crucial role in determining its price. Additionally, fears of a recession and the actions of central banks will continue to impact the market in the coming weeks.
Shiba Inu (SHIB) technical analysis
Shiba Inu (SHIB) has dropped by approximately 30% since August 12, 2023, falling from $0.000011 to a low of $0.0000072. Currently, the price stands at $0.0000077, with bears still controlling the price action.
Many analysts predict that more investors may begin purchasing Shiba Inu (SHIB) in the upcoming weeks. However, as long as the price remains below $0.000009, the cryptocurrency is still within the SELL zone.
Шиба Ину (SHIB) үшін негізгі қолдау және қарсылық деңгейлері
In this chart (starting from February 2023), key support and resistance levels are marked to guide traders in predicting potential price movements. Shiba Inu (SHIB) is currently under pressure, but if it breaks above $0.0000090, the next resistance level to watch for could be $0.000010.
The crucial support level is $0.0000070. A break below this level would signal a “SELL” signal and open the way for a further decline towards $0.0000065. If the price drops below $0.0000060, a significant support level, the next potential target would be around $0.0000050.
Reasons to anticipate a rise in Shiba Inu (SHIB) price
While the last two weeks have been negative for SHIB’s price, one positive indicator is the continued rise in the number of new SHIB addresses. The Shibarium ecosystem recently surpassed the significant milestone of one million addresses.
Additionally, large transactions valued at $100,000 or more have surged, which reflects high investor enthusiasm and a positive outlook for the future of SHIB. Although SHIB is still in a bear market, if the price breaks above $0.0000090, the next target could be $0.000010.
Indicators of potential decline for Shiba Inu (SHIB)
Shiba Inu (SHIB) remains unpredictable and a high-risk investment. Investors should stay cautious when dealing with this cryptocurrency. The broader macroeconomic environment is also uncertain, with tight monetary policies aimed at combating high inflation, deteriorating financial conditions, and ongoing disruptions due to the Russia-Ukraine conflict.
Additionally, SHIB’s price is often correlated with Bitcoin’s price. A drop below the $25,000 support level for Bitcoin could negatively affect SHIB’s price.
Сарапшылар мен сарапшылардың пікірлері
Despite SHIB remaining in a bear market, the continued rise in new SHIB addresses and activity from SHIB whales (those making large transactions of $100,000 or more) suggests growing investor confidence. IntoTheBlock reported that $29.24 million worth of large SHIB transactions took place in the last 24 hours. When whales increase their trading activity, it often signals confidence in the short-term price potential of the coin.
If whales continue to purchase SHIB, its price may break above the resistance at $0.000010. However, investors should be aware of the extreme volatility in the cryptocurrency market, making it difficult to predict short-term price movements, let alone long-term targets.
Жауапкершіліктен бас тарту: Cryptocurrencies are highly volatile and may not be suitable for all investors. Never invest money you cannot afford to lose. The information on this site is provided for educational purposes only and should not be construed as financial or investment advice.
