Introduction
The Shiba Inu cryptocurrency is experiencing a sustained decrease in value against investor expectations. The Shiba Inu price is currently trading at $0.00000908 on Thursday, representing an 8% drop from its previous value. This downward trend suggests that the cryptocurrency may revisit lower support levels at $0.0000075 and $0.0000065.
Shibarium Mainnet Launch’s Impact on Shiba Inu
Since mid-June, the Shiba Inu cryptocurrency has been on an upward trajectory, with its price increasing from initial values of $0.000006 to reach August highs of $0.00001130. As the deployment of the Shibarium mainnet protocol approached, many investors positioned themselves in anticipation of a rally in the SHIB token.
Technical Difficulties
Following the launch of Shibarium, the price of Shiba Inu experienced a decline. This drop suggests that the market had already factored in the mainnet launch, leading investors to cash out their holdings. Additionally, technical issues emerged alongside the release of the protocol. Chinese crypto reporter, Colin Wu, highlighted the sudden halt in block production and associated complications. There are currently $1.7 million worth of ETH locked on the Shibarium cross-chain bridge, according to data from Beosin monitoring.
Potential Long-Term Problems with Shibarium
The SHIB community is concerned that the ongoing issues with the Shibarium protocol could signify more significant problems related to security, safety, and scalability. Beosin has advised investors to avoid the Shibarium protocol until these issues have been completely addressed and fixed.
Current Market Trend – A Buying Opportunity?
Despite the challenges faced by Shiba Inu, these difficulties have made the meme coin susceptible to potential losses. As a result, some investors may choose to sell in order to protect the gains they have made in recent weeks. Additionally, reports indicate that much of the selling pressure comes from substantial whale activity in SHIB, LEASH, and BONE tokens. The path of least resistance is expected to remain upward, supported by a new sell signal from the Moving Average Convergence Divergence (MACD) indicator. Investors looking to short SHIB may see the price fall below its initial support at $0.000009, as indicated by the MACD line crossing below the signal line.
Conclusion
Although Shiba Inu is currently experiencing a downturn, this presents a potential buying opportunity. There is a possibility of Shiba Inu recovering from its current position and bouncing off the support created by the 50-day Exponential Moving Average (EMA) and the 100-day EMA. However, if losses continue, investors should be prepared for SHIB to test lower support levels at $0.0000075 and $0.0000065.
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