The cryptocurrency world is relatively inconsistent due to elevated volatility. Months ago, a meme coin called Shiba Inu touched an all-time high. That price gave early buyers huge profits. Yet, things are not good after that. This post is all about the important question: Shiba Inu price analysis and can Shiba Inu reach 10 Cents? Let’s take a look at it in more detail.
Shiba Inu Price Analysis: What is Shiba Inu?
Meme Coins were originally launched as fun projects. The original meme coin was the Dogecoin. This coin wanted to make fun of Bitcoin. The coin’s emblem was the Shiba Inu, a well-known sole dog breed. This dog has become a famous internet meme because of its expression. Dogecoin took this meme and made a thriving cryptocurrency with it.
The sensation of Dogecoin came as a stunner. The coin even became one of the 10 most beneficial cryptocurrencies in the year 2017. Over a period, many wannabes pursued. The most flourishing imitator was the Shiba Inu Coin. The Shiba Inu was only launched in 2020. It is 7 years younger than Dogecoin. Yet, it became famous much more rapidly than other meme coins and cryptocurrencies. Shiba Inu is based on the Ethereum blockchain.
Shiba Inu Price Analysis: Why Did Shiba Inu Price Crash?
As mentioned earlier, Shiba Inu is based on the Ethereum blockchain. The fairly new currency drew countless investors, particularly after the success of Dogecoin. Yet, the coin has been encountering constant drops fueled by increasing sell-offs from traders. At the time of writing this, the Shiba Inu price is sitting at $0.00001235. In the last seven days, the SHIB price has decreased by almost -23.8%. Below could be the reasons why the coin has been driving a bearish trend.
Join the Chat Discord
- After a constant price rise, it’s not unexpected that Shiba whales took the profits. Yet, if holders sell too much of the coin simultaneously, it may direct to more drops. Of course, no one likes to lose their gains, making it predicted for traders to trade while still in returns. On the other hand, those who purchased late may carry the asset while expecting prospective gains.
- Typically, digital assets are extremely volatile. Yet, memecoins seem to be more volatile than others. This volatility has supported Shiba Inu’s price to jump rapidly within a short duration and is also after its continued failure. Volatility is an understood risk associated with cryptocurrencies. While some assets have demonstrated some form of equilibrium, unpredictable market conditions may alter the course of this.
- Shiba Inu is an ERC-20 token. According to its whitepaper, the coin is mainly concentrated on building a community, which it calls the “ShibArmy.” The designers also prioritize Shiba Inu dogs and are vigorously exploring options to help them in the real world. In other words, it brings nothing new to the table.
- The meme coins’ price wave in favor began with tweets from Tesla’s CEO Elon Musk, who embraced a Shiba Inu breed puppy in October. Shiba Inu also grew when famous cryptocurrency exchanges like Binance and Coinbase Pro supported it. But now it seems that the Tesla CEO is also not much talking about SHIB or DOGE on Twitter and also the coins seem to depend on the “Greater Fool Theory”.
The greater fool theory means most people purchase an asset expecting to sell it to someone (the greater fool) for making more money in the future without believing fundamentals or real-world usefulness.
Can Shiba Inu Price Reach 10 Cents?
Shiba Inu Price: SHIB/USD Weekly chart – TradingView
Shiba Inu’s price, after stretching the $0.00001 support, was capable to demonstrate the one-time $0.0000138 support as resistance. Therefore we expect the Shiba Inu price to retest the $0.00001 support next. Thus, a short-term rally phase / sideways phase could result in between $0.00001 and $0.0000138. We feel that a crash to approximately $0.00001 shortly is very possible.
As Shiba Inu’s price is displaying no indications of beginning a trend turnaround anytime soon, we hope the price to touch the $0.00001 support sooner or later. While the price could vary between $0.00001 and $0.0000138 in the next few weeks, the probabilities that the price will begin an uptrend are remote. We expect the price to split the $0.00001 support. The price could then strive for the next support. This is approximately $0.000006.
Conclusion
Investing in Shiba Inu right now could be risky, particularly since it is continuously dropping. The coin is yet to recover, and it may take some time before it shows new progress. Looking at the basics, it has a fragile framework and the price could further drop.
You might also like
More from Altcoin
Source: https://cryptoticker.io/en/can-shiba-inu-price-reach-10-cents/