Shiba Inu (SHIB) Poised For Significant Breakout: Here’s What To Watch Out For

Christian Encila

2 years ago

3 mins read

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Shiba Inu (SHIB) has faced challenges in maintaining the level of liquidity it once enjoyed. In recent weeks, the coin has exhibited minimal volatility, leaving many investors wondering about its future direction.

However, despite the apparent inactivity, various indicators hint at the possibility of a substantial price movement in the near future. As the path ahead for SHIB seems somewhat restricted, it raises the question of where the coin may head next and what potential opportunities or hurdles lie ahead.

Shiba Inu (SHIB) Liquidity Woes

During the peak of the 2021 bull market, Shiba Inu (SHIB) emerged as a prominent player, spearheading price rallies that garnered significant attention. As a result, ShibaSwap, the decentralized exchange associated with SHIB, experienced a surge in Total Value Locked (TVL), reaching an impressive $1.75 billion.

However, the previously soaring TVL has taken a massive hit, plummeting to just $25.16 million, according to DefiLlama. At first glance, this dramatic decline in TVL may raise concerns about a potential liquidity crisis. Yet, a closer examination suggests that this situation may be temporary rather than a long-term predicament.

Recent data indicates a notable increase in SHIB purchases across various time intervals, and a closer look at wallet data reveals a mixed picture, with some ranges displaying an increase in holdings while others demonstrate a decrease.

SHIB total market cap currently at $5.1 billion on the daily chart: TradingView.com

SHIB Investors Show Confidence in Long-Term Potential

Upon analyzing on-chain data, Santiment’s chart reveals a notable pattern among SHIB token holders. Specifically, investors with SHIB holdings ranging from 1 to 1,000,000 tokens have demonstrated a consistent increase in their balances. This upward trend suggests that a considerable segment of the retail cohort holds a certain degree of belief in the long-term performance of this meme-inspired cryptocurrency.

Network usage data also highlights a decline in daily transactions, dropping from an average of 7,000 to approximately 3,500. Nonetheless, this is not necessarily indicative of an impending emergency. Instead, this could be part of a larger phase of stabilization for the token, as holders wait for a price rebound.

7/10 Network usage data is also worth noting – daily transactions have halved from an average of 7k to 3.5k. This decrease could signal a reduced interest in #SHIB, adding weight to the liquidity crisis theory.

— U.Today (@Utoday_en) June 2, 2023

Given the current state of a stagnant price and reduced volatility, the likelihood of SHIB preparing for a significant price shift appears high. This prospect has garnered the attention of investors who are closely monitoring the market for any forthcoming developments.

Source: Coingecko

The SHIB price on CoinGecko is currently at $0.00000855, experiencing a slight 1.0% drop in the last 24 hours and a 3.1% decrease over the past seven days.

-Featured image from Perfect Dog Breeds

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.