Shiba Inu Price Challenge: Gunning For $0.00001 After Shibarium Snag

Christian Encila

1 year ago

4 mins read

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Shiba Inu (SHIB) has recently witnessed a tumultuous journey marked by a sharp reversal from its peak at $0.00001136.

This reversal, known as a V-top, has raised significant concerns within the crypto community and the trading floors. But what exactly does this term mean, and what implications does it hold for SHIB investors and enthusiasts?

A V-top reversal is a distinctive price pattern observed in technical analysis. It occurs when a cryptocurrency’s value experiences a rapid ascent to a peak, followed by an equally swift decline.

In SHIB’s case, this sharp reversal saw its value plummet from $0.00001136, a striking deviation from its recent surge. This downward spiral has caused the current price to stand at $0.00000789 according to CoinGecko data, reflecting a 4.5% drop within 24 hours and a staggering 23.1% slump over the past seven days.

Shiba Inu: The Intersection Of FUD And Network Activity

The timing of this massive price slump coincides with a period of uncertainty and anxiety within the SHIB community, centered around the Shibarium Layer 2 launch. The emergence of fear, uncertainty, and doubt (FUD) has cast shadows over the project, leading to heightened caution among SHIB holders.

Similar to Polygon, Ethereum, and other blockchains, Shibarium is open for anyone to build on. Regrettably, this also provides an avenue for bad actors to develop scam dApps and rug-pull tokens, among other things.

The mere incorporation of the term “Shibarium” or “Shib” in… pic.twitter.com/AiNqORi7J2

— 𝐋𝐔𝐂𝐈𝐄 | Summer of Shibarium (@LucieSHIB) August 16, 2023

Lucie Shib, a prominent figure in the Shiba Inu executive team, further accentuated these concerns by issuing warnings about potential risks of exploitation.

As a result of these apprehensions, SHIB holders have noticeably scaled back their transactional engagement over the past week. A closer look at CryptoQuant data highlights a stark contrast: on August 12, the SHIB Transaction Count exceeded 16,500, pushing the price to a four-month peak.

Source: CryptoQuant

However, this number dropped drastically to a mere 5,601 transactions on August 21, signifying a substantial 66% decline in network activity.

This trend has been fueled not only by Shibarium FUD but also by the broader downtrend sweeping through the crypto market.

Shiba Inu (SHIB) is currently trading at $0.00000795. Chart: TradingView.com

A Glimpse At SHIB Demand And Potential Recovery

Meanwhile, recent trading data from multiple cryptocurrency exchanges indicates that Shiba Inu enthusiasts are actively placing purchase orders, indicating their optimism for a positive market shift. This reflects their confidence in a potential bullish reversal and their active engagement in shaping Shiba Inu’s future.

Source: IntoTheBlock

Optimistic investors have initiated live purchase requests for nearly 2 trillion SHIB tokens, marking a rise of 400 billion compared to the 1.5 trillion SHIB orders registered the previous week. In contrast, the quantity of sell orders has maintained its position at 1.2 trillion SHIB tokens, showing little movement.

This intriguing observation suggests that, despite prevailing uncertainties, market demand for SHIB remains strong, as investors potentially await the clearance of FUD clouds.

Looking ahead, the resolution of challenges surrounding the Shibarium L2 network could pave the way for SHIB to regain momentum and reclaim the $0.000011 threshold.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Sniper Country

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.