The Shiba Inu ecosystem has experienced significant growth in line with market movements. When Bitcoin began its upward trend on September 26, Shiba Inu followed suit and saw a surge of over 45% in the last two days. However, the recent decline in price begs the question – what factors are contributing to this fall?
The Surge in Shiba Inu Price
On September 25, Shiba was trading at $0.00001503. As Bitcoin started its uptrend, Shiba found support from the 50-hour moving average and began to rise. It peaked at $0.00002169 before dropping 8%, finding support from the 20-hour moving average.
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Reason for the fall?
Several factors have contributed to Shiba Inu retracing its steps. The presence of resistance at $0.00002230, which previously acted as support, has now become a resistance level. Additionally, the 200-day moving average above the current trading price of $0.00002013 has also influenced the price drop.
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Furthermore, the RSI indicator is signaling overbought conditions. To address this, Shiba Inu may need to consolidate or retrace its steps. The $0.00001930 area provides strong support and could prevent further price drops.
Is the Shib army in Profit?
According to IntoTheBlock data, 57% of Shiba investors are currently in profit, while 36% are in loss. Additionally, 7% of investors purchased Shiba Inu at the current price. The presence of approximately 145.65k Shiba wallets holding 49.21 trillion tokens suggests that some investors are still waiting to enter the profit zone, having invested between $0.000024 and $0.000030.
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Developments Boosting Rise
The Shiba Inu ecosystem has seen significant developments recently, including upgrades to Shibarium, the launch of the K9 mainnet, and large-scale movements of Shib tokens by whales. These developments have contributed to the rise in price and total liquidity locked in the Shibarium network, which currently stands at $3.98 million according to DefiLlama data.
What to Expect?
With a dedicated project team, ongoing developments, and an increasing burn rate for Shib, the project is poised for growth. The upcoming launch of the stablecoin SHI on Shibarium further adds to the project’s potential. These factors instill confidence in the community, leading to increased support and value for the token in terms of both popularity and utility.
