After a meteoric rise, the cryptocurrency Shiba Inu lost as much as 80%, and at the moment it shows no signs of wanting to recover.
Shiba Inu, the cryptocurrency that has the same dog as the Dogecoin meme coin as its logo, is causing a buzz.
In just 2 months, the Shiba cryptocurrency rose more than 100,000%. This means that if you had invested only $1 in this coin at the end of March, this money would have multiplied by 1000 when the cryptocurrency reached its all-time high on May 10.
Without a doubt a more than incredible performance. Even more so if we measure the momentum since this coin was born. According to data from CoinMarketCap, Shiba Inu has increased more than 550,000% during its very short life of less than a year.
Are Shiba Inu Cryptocurrency Earnings Sustainable?
The whole narrative behind this project is the same as that used for the Dogecoin cryptomeme: take it to the moon, thanks to many holders who accumulate and accumulate the accessible coins.
However, we are facing a simple speculative trend capable of creating bubbles, and likewise exploding them.
There are few fundamentals behind the project to really affirm that we are facing a sustainable price over time.
It is worth noting that the value propositions offered by the project behind the Shiba token are a decentralized exchange and an NFT market.
An unhealthy coin issuance, an immature project, and a wave of unscrupulous investors can’t help but generate the perfect storm to turn things off badly. However, we can still see the fever continue for a while longer.
We recently saw DOGE climb to the top 4 of the crypto market, a feat more than impressive when you consider that this has always been a simple meme.
Shiba Inu for its part has also climbed quite a bit among the largest. Today it ranks 34th in the ecosystem, thanks to a market capitalization of $3,556 million.
Technical analysis of Shiba Inu, the car nicknamed Dogecoin Killer
When we look at the weekly chart of the price of Shiba, we notice a great bearish force, caused by the general collapse of the market, which seems to have punctured at least one first bubble in this space of the memes.
At the moment, it seems that the price of this currency shows no signs of having completed the corrective process.
However, a large part of the mega-profits that this cryptocurrency has accumulated throughout its life is still maintained. Therefore, we can still think that the bulls could surprise us at any moment.
Key support and resistance levels
SHIBA has been locked in a small sideways range for the past 2 weeks, with support at around $0.00000850 and resistance at $0.00001190.
At the moment, the little bullish force that we have been seeing while making pullbacks tells us that the probabilities remain on the side of the bears.
If so, the support at $0.00000850 is likely to be broken, which would lead to sales to a minimum of $0.00000420.
However, it is clear the great power that bulls can print in a matter of hours on the Shiba Inu cryptocurrency, so they could still surprise us.
To think about buying, the resistance at $0.00001190 must be broken. This would lead to a rise to $0.00001830.