SHIB Price Challenge: Gunning For $0.00001 After Shibarium SnagAugust 22, 2023
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.
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.
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.
Related Reading: XRP About-Face Sparks Another Descent – What Lies Ahead?
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
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