The volatility of Shiba Inu (SHIB)
Shiba Inu (SHIB) is an Ethereum-based meme coin inspired by Dogecoin, launched in 2020 by an anonymous creator named Ryoshi. Unlike Bitcoin, which is intentionally designed to be scarce, SHIB has a massive supply of one quadrillion tokens. The Shiba Inu ecosystem supports projects such as an NFT incubator and the development of a decentralized exchange called Shibaswap.
Much like many other cryptocurrencies, Shiba Inu is known for its significant volatility and frequent price swings. SHIB gained substantial attention in 2021, which led to significant price increases, driven largely by speculative traders and meme enthusiasts.
At present, SHIB’s market perception is shifting from being merely a speculative meme coin to a more established digital asset.
The growing SHIB community has played a pivotal role in strengthening its position as a more reputable asset. The token’s listing on major exchanges such as Binance and Coinbase has also boosted its credibility, attracting interest from larger investors. However, as with all meme-based cryptocurrencies, caution is advised when considering an investment in SHIB.
Surge in Shibarium transactions
One positive development is the recent spike in transaction volume on the Shibarium network. As of November 19, the network recorded a total of 8,930 transactions, which jumped to an impressive 34,670 transactions by November 22, reflecting a 288% increase within just three days. The total number of transactions since the launch of the network has now surpassed 3.578 million.
While the number of active accounts on the network also showed a modest increase, the growth was not as pronounced as the surge in transactions. Active accounts rose from 569 on November 20 to 648 on November 22. Despite this expansion in Shibarium’s activity, the price of Shiba Inu (SHIB) has not seen a corresponding increase.
One factor influencing this is the broader market correction following Changpeng Zhao’s resignation as Binance CEO and the exchange’s $4 billion settlement with the DOJ. This correction caused Bitcoin’s price to fall from over $36,000 to the low $35,000 range, which impacted SHIB’s price negatively.
Investors should remember that the cryptocurrency market is notorious for its volatility. Thorough research and understanding of one’s risk tolerance are essential steps before committing any capital.
Looking ahead, both Shiba Inu (SHIB) and the broader crypto market will be affected by regulatory decisions, especially by the U.S. Securities and Exchange Commission (SEC), concerns over an impending recession, geopolitical issues such as the situation in the Middle East, and the monetary policies of key central banks.
Shiba Inu (SHIB) technical analysis
Shiba Inu (SHIB) has dropped around 20% since November 11, 2023, falling from $0.0000096 to $0.0000076. Currently, SHIB is priced at $0.0000081. As long as the price remains above $0.0000075, there is no immediate threat of a major sell-off.
Key support & resistance levels for Shiba Inu (SHIB)
Based on a chart from April 2023, we’ve identified important support and resistance levels that may guide traders. Shiba Inu (SHIB) is currently under selling pressure, but if the price surpasses $0.0000090, the next resistance target could be $0.000010.
The key support level is $0.0000075. If the price breaks below this, it could signal a “SELL” and the next target would likely be around $0.0000070. If SHIB falls below $0.0000070, which also represents a significant support point, the next level of support may lie around $0.0000065.
Factors suggesting an upward trend for Shiba Inu (SHIB)
While the price of SHIB has struggled in recent days, the positive news is the substantial surge in transaction volume on the Shibarium network. The number of transactions rose from 8,930 on November 19 to 34,670 on November 22, marking a 288% increase within three days. Additionally, active accounts grew from 569 to 648 during the same period. This indicates increasing enthusiasm and a positive outlook for the project. For the bulls to take charge again, a rise above $0.0000090 would be an important signal.
Factors indicating further decline for Shiba Inu (SHIB)
Shiba Inu (SHIB) remains a volatile and high-risk asset, and investors should proceed with caution. A wide range of factors, such as market sentiment, regulatory changes, technological progress, and macroeconomic trends, could influence SHIB’s price.
Market conditions can shift quickly, so staying informed and using risk management strategies are crucial for navigating the volatile crypto space. SHIB’s price tends to move in tandem with Bitcoin, so if Bitcoin drops below the $35,000 support level, it could further negatively impact SHIB’s price.
Прозрения от анализатори и експерти
Despite recent price pressures, SHIB’s increasing number of new addresses and continued activity from Shiba Inu whales suggest positive momentum. These indicators are generally seen as encouraging for SHIB’s potential price growth. However, market sentiment will remain a critical factor in determining SHIB’s price direction.
The crypto market is known for its volatility, and although efforts are underway to stabilize it, analysts expect ongoing fluctuations. With concerns about a potential recession and broader macroeconomic uncertainty, investing in SHIB requires careful consideration and a well-thought-out approach to risk management.
Опровержение: Cryptocurrency is highly volatile and may not be suitable for all investors. Never invest more than you can afford to lose. The information provided here is for educational purposes only and should not be considered as financial or investment advice.
