The recent developments in the Shiba Inu ecosystem have closely mirrored market trends. As Bitcoin began its upward trajectory on September 26, Shiba Inu (SHIB) also saw a significant rise. Over the past two days, SHIB surged by more than 45%. However, the price has since started to fall. Let’s delve into the reasons behind this recent price movement.
The Surge in Shiba Inu Price
On September 25, Shiba Inu was trading at $0.00001503. As Bitcoin initiated its uptrend, SHIB also found support from the 50-hour moving average and began to surge. According to the hourly SHIB chart, the price peaked at $0.00002169 before experiencing an 8% decline. This drop found support at the 20-hour moving average.
Reasons for the Fall
Several factors contributed to Shiba Inu’s recent price decline. Firstly, there’s a significant resistance level at $0.00002230, which previously served as strong support. Consequently, this zone has now turned into a resistance level. Additionally, the 200-day moving average, positioned just above SHIB’s current trading price of $0.00002013, also played a role.
Moreover, the Relative Strength Index (RSI) indicated an overbought condition, suggesting a potential price correction. To address this, SHIB must either consolidate or retrace. The area around $0.00001930 serves as a robust support level, potentially preventing further price drops.
Is the SHIB Army in Profit?
According to data from IntoTheBlock, 57% of SHIB investors are currently in profit. However, 36% of investors are still at a loss, while 7% have purchased SHIB at its current price. Another reason for the price drop is the presence of approximately 145.65k SHIB wallets holding around 49.21 trillion tokens. These investors are waiting for the price to rise to enter the profit zone, having bought SHIB at prices ranging from $0.000024 to $0.000030.
Developments Boosting the Rise
The Shiba Inu ecosystem has witnessed significant developments recently. Shibarium has undergone a major upgrade and a hard fork, and the launch of the partner K9 mainnet has also taken place. Moreover, large volumes of SHIB tokens are being bought and moved by whales, further influencing the ecosystem.
These developments have contributed to a surge in the total liquidity locked within the Shibarium network. According to DefiLlama data, the total value locked on the Shiba Inu blockchain is currently $3.98 million.
What to Expect?
With a dedicated project team, numerous developments, and an increasing SHIB burn rate, the token is on a promising path. Additionally, the SHIB team is working on launching a stablecoin, SHI, on the Shibarium network. These factors instill confidence within the community, suggesting that SHIB will not only rise in popularity but also in price and utility.
