Back to Basics for Shiba Inu? SHIB/USD Heading for 0.00000655 Support
When cryptocurrencies started rising in July 2020, Shiba Inu showed indecision. The token remained subdued below the 0.00000655 level, which was acting as a resistance area at the time.
From August 7, other crypto tokens started showing even greater bullish momentum, with some, like Solana, rising to new record highs in less than two weeks. At the same time, SHIB/USD broke past the 0.00000655 resistance, much to the excitement of fans, who would have loved the hype of the crypto token becoming a Dogekiller.
Now, after hitting a high of 0.00000947, SHIB/USD buyers seem to have run out of gas. At the time of writing, the cryptocurrency was trading at 0.000720 and seemingly on its way to the previous support level of 0.00000655, where the bullish momentum started.
Crypto Retreat and SHIB/USD
It would be unfair to judge Shiba Inu without acknowledging that cryptocurrencies have been experiencing a general retreat this week.
At the time of writing, the biggest cryptocurrencies, Bitcoin, Ethereum and Cardana, were down by 2.86%, 2.80% and 5.82% respectively, in the last 24 hours. However, the three have gone up by 6.0%, 3.69% and 23.16%, respectively, in the last 7 days.
Conversely, SHIB/USD was down 5.47% in the last 24 hours and it has shed an additional 9.87% in the last 7 days. This clearly shows Shiba Inu in a bad light compared to its peers. The crypto token could now be on its way to the low it escaped in the first week of August.
Has Shiba Inu Lost its Mojo?
Shiba Inu’s rise, just like that of its sister meme token, Dogecoin, has been largely driven by social media mentions and hype, rather than fundamentals. Now, limited interest in the meme coin could be weighing down on it.
As reported by Cointelegraph on July 7, 2021, the total value locked (TVL) in ShibaSwap topped $1 billion just 24 hours after the launch of the ShibaSwap DeFi platform. However, the excitement is slowly dying, as the TVL has since dropped to below $350 million in just a month. The drop could spell doom for Shiba Inu enthusiasts, after the FOMO investor-drive fades.
Let’s Have a Look at Shiba Inu Trading Lately
SHIB/USD – A Technical Outlook
Shiba Inu 4-Hour Analysis
From the 4-hour chart above, it can be seen that SHIB/USD is on a clear downtrend. It is also below the ascending trendline, which started on August 7, which means that a further drop is possible.
SHIBA/USD Trade Idea
Although I view the current drop in SHIB/USD as being connected to the broader retreat in cryptocurrencies, I also interpret the weak fundamentals as being responsible for the fall. Having posted a weekly drop, even as other crypto tokens surged or shed by lower margins, Shiba Inu could be ailing from limited influencer mentions and investor interest.
Going by the technical pointers and fundamental aspects, I project that SHIB/USD will claim the 0.00000655 support. I will watch for price action trading signals at this level for potential buys in the cryptocurrency. If the token breaks below this level, I would be keen on the 0.00000607 as the next point.
However, given the wide volatilities on SHIB/USD, I am keen to watch further developments in the cryptocurrency. Revived social media hype and influencer mentions could also offer a clue on the potential for upside on SHIB/USD. Good luck!
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