With the significant recovery seen in the cryptocurrency market, the price of Shiba Inu (SHIB) coin has finally managed to climb and break through a strong resistance level that it has been stuck under since the beginning of September. The price had been trading near its lowest levels since 2021.
It is evident that this upward wave was not a result of new positive developments in the Shiba Inu network, but rather driven by positive market sentiments. This can be attributed to increased optimism regarding the approval of Bitcoin ETF funds and expectations of the Federal Reserve starting to taper its monetary policy in the United States.
This particular point is crucial when trying to forecast future trends for the price of this popular meme coin.
Issues with the Shiba Inu Network
The price of Shiba Inu (SHIB) coin has been moving in a downward trend since mid-August, amidst repeated failures and setbacks in the development project of the Shiba Inu network.
Before the official launch of the Shiba Inu network, investors and traders had high hopes that it would be a major turning point, as the goal was to transition the Shiba Inu (SHIB) coin from being just a meme and joke currency to a practical and valuable cryptocurrency that could elevate its price significantly.
However, that did not happen, or at least, the start was not promising. Issues arose with the bridge connecting the Shiba Inu subnetwork (Layer 2) and the Ethereum main network (Layer 1), resulting in the locking of numerous digital assets worth millions of dollars.
Thus, hope turned into concern, and greed turned into fear. The price of Shiba Inu (SHIB) coin quickly plummeted, erasing all the gains made in the previous weeks.
If we look at the performance of Shiba Inu (SHIB) coin, it has only achieved a 1.60% increase since the beginning of the year, and just recently emerged from a negative zone, whereas Bitcoin (BTC) has recorded a current growth of 113%.
This has caused 80% of Shiba Inu investors, who are referred to as Shib Army, to incur losses.
Technical Outlook for Shiba Inu (SHIB) Coin Price
The price chart of Shiba Inu (SHIB) coin accurately reflects the challenging situation faced by the currency and its main project, ShibaSwap.
While other cryptocurrency prices were soaring with double-digit percentage gains, Shiba Inu (SHIB) coin was trading within a very narrow range within the resistance zone between $0.0000076 and $0.0000080.
Despite the recent minor surge, the price quickly returned to a downward trend after touching the first resistance barrier at the Fibonacci retracement level of 38.2% at $0.0000084.
This indicates the weakness of the upward momentum, facing a strong resistance barrier at the downward trendline that the price has been moving below since August of last year, which it has failed to break even during the peak of optimism surrounding the coin and its project.
Therefore, unless significant developments occur either in the market or in the Shiba Inu project, any price increases for Shiba Inu (SHIB) coin, if they occur, are likely to remain limited.
Disclaimer: The information provided is not financial advice. Chinwa.tech does not take any responsibility for investments made based on the information provided in this article. We recommend consulting a qualified specialist or financial advisor before making any investment decisions.