Shiba Inu’s Crucial Support and Price Recovery
The price of Shiba Inu (SHIB) is currently hovering above its most important support level at $0.000007. Despite a 1.3% decline in the last seven days, the popular meme coin’s search for a bear market seems to be ongoing.
The launch of Shibarium, a Layer 2 scaling protocol, initially caused a rally in Shiba Inu’s price from its low point in June. However, the rally lost momentum after reaching highs of $0.000011 due to scaling challenges faced by the network. As a result, the token experienced a sell-off that led to a plummet to $0.000007.
If the support at $0.000007 holds, investor confidence in a rebound above $0.00001 will increase. Additionally, with SHIB trading above the lower ascending trendline, the risk of further declines may have significantly reduced.
Indicators Pointing Towards a Rebound
The Moving Average Convergence Divergence (MACD) indicator has given a buy signal, indicating that a rebound is likely. Traders often look for the blue MACD line crossing above the red signal line as an opportunity to buy. The Relative Strength Index (RSI) also suggests a positive outlook for SHIB.
However, it is important for traders to consider potential obstacles that could dampen the uptrend, such as the 21-day EMA at $0.00000751, the 100-day EMA at $0.00000817, and the 200-day EMA at $0.00000886.
On the other hand, if SHIB loses support from the lower ascending trendline, it could increase the risk of further declines and a search for a lower bear market bottom.
Traders Attracted to Dummy Token
The Shiba Inu community is buzzing with discussions about a fake token called Calcium (CAL) that was launched by the developers for testing purposes. Some traders saw this as an opportunity to make a quick profit and started buying Calcium. However, the token was not intended for investment purposes.
Traders who bought Calcium quickly created a new trading pair on Uniswap, leaving the CAL tokens on ShibaSwap almost worthless. On Uniswap, the token gained more trading volume and liquidity compared to its value on ShibaSwap.
The Spinoff of CAL
Traders claiming to have lost money with CAL moved to Uniswap, where trading volumes reached $4 million supported by $164,000 in liquidity. The situation on Uniswap was different from ShibaSwap, where CAL tokens became almost worthless.
Shiba Inu developers created CAL but renounced their rights to the token, giving control over to the community.
Hot Take: The Ups and Downs of Shiba Inu
Shiba Inu’s price recovery depends on its ability to hold support at $0.000007 and build momentum towards reaching $0.00001. Indicators suggest a potential rebound, but traders should be cautious of potential obstacles along the way.
In addition to monitoring Shiba Inu’s price, traders have been attracted to a dummy token called Calcium, which has caused some confusion and losses. However, the situation differs between ShibaSwap and Uniswap, where CAL gained more trading volume and liquidity.
The ups and downs of Shiba Inu’s journey continue as developers relinquish control to the community, highlighting the unpredictable nature of the cryptocurrency market.
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