Shiba Inu (SHIB), a dog-themed meme coin that aspires to be an Ethereum-based alternative to Dogecoin (DOGE), has been trading sideways for quite a long time, undermining its reputation as a darling asset for crypto degens starved for volatility. Can SHIB price break out from its corrective pattern in the nearest future? Let’s take a closer look at its trading charts.
What is Shiba Inu
Before we move on to technical analysis, let’s do a quick recap on what is Shiba Inu and its current market position.
Shiba Inu is a meme token, which means that it was launched as a joke rather than a serious project with actual utility. Its mascot features a popular Japanese dog breed (hence the name), and the main pillars of its ecosystem are all dog-themed as well — there are LEASH, a native token of the ShibaSwap DeFi platform, BONE, the governance token of SHIBArmy, and Shiboshis, a collection of 10,000 pixelated Shiba Inu NFTs. And the guiding principles of the project are outlined in a “woof” paper — presumably a play on a white paper, a document released by developers that explains the technology and objectives of the crypto project.
Shiba Inu was launched in August 2020 by an anonymous individual or group called Ryoshi. SHIB token started with a mind-boggling supply of one quadrillion (equal to 1,000 trillion). Upon the initial launch, 50% of tokens were locked in the Uniswap pool for liquidity, while the other half was airdropped to Ethereum co-founder Vitalik Buterin, who then donated $1 billion worth of SHIB to a COVID-19 relief fund in India and sent the rest to a dead wallet.
Shiba Inu market overview
As a meme token, SHIB remains one of the most volatile assets on the crypto market, since its price is mostly driven by a social media-fueled speculative frenzy. For this reason, the doggy coin was able to place itself among the top 20 cryptocurrencies in the CoinMarketCap ranking. Indeed, its volatility is favored by day traders, and a strong community of supporters known as SHIBArmy is committed to spreading the word about their beloved crypto.
At the time of writing, SHIB market capitalization amounts to $5,771,844,739. Over the last 24 hours, its trading volume reached $355,625,321 with a circulating supply of 549,063,278,876,302 SHIB.
Now that you already have a good understanding of what the SHIB token is, do you think SHIB may be a good investment? If you can’t wait to know, let’s check together its technical indicators that may help us forecast Shiba Inu future performance.
Shiba Inu price analysis
Currently, Shiba Inu ranks 15th in terms of market cap. But will the latest upgrades, developments, and changes in the Shiba Inu ecosystem help SHIB price to reach higher? Let’s take a closer look at the charts.
SHIB Relative Strength Index, which is a momentum oscillator that measures the speed and change of the asset’s price movements, currently stands at 66.98, approaching an overbought area. This means that the meme coin currently trades at a price above its intrinsic or fair value. Therefore, despite today’s green candle, traders must approach this asset with caution and don’t get carried away by the market frenzy. Keeping all this in mind, traders can move away from unexpected losses due to the crypto market’s wild swings.
Let us also look at the Simple Moving Average (SMA) and the Exponential Moving Average (EMA) of SHIB.
Since the start of 2022, SHIB’s price has seen many bullish moves which are higher than the previous one. More so, these are followed by fluctuations, consolidation, and corrections right away. Taking this into consideration, SHIB has a competitive market this year.
Shiba Inu price prediction
The chart below shows that SHIB has performed great over the past few days. However, the SHIB price shows a bullish signal. If this trend continues, SHIB might run along with the bulls, breaking its $0.000011 resistance level and going higher.
Conversely, if the investors do not favor crypto, the bears might take over and pull SHIB from its uptrend position. In simpler terms, the price of SHIB might decrease to almost $0.000009, a bearish signal.
Meanwhile, our long-term SHIB price prediction for the rest of the year is bullish. It has a high possibility of reaching a $0.00002 price in 2022, which is more than twofold from its current price.
Obviously, Shiba Inu is a very risky and speculative investment so investors should conduct their own research or reach out to financial advisors before making any financial decisions. Additionally, the coin for now has a very limited utility and its price is being driven mostly by social media hype, which can result in significant price fluctuations.
Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice. For educational purposes only.