Shiba Inu was last up over 14% in the last 24 hours, making it the best performing top 20 cryptocurrency.
With SHIBA/USD now above $0.0000115, the token is up over 40% on the week.
SHIB is benefitting from a broader rebound in crypto market sentiment this week, plus signs of bottom fishing.
A rally in broader cryptocurrency markets this week in wake of recent sharp declines and as rising US recession bets ease fears about US Federal Reserve hawkishness has facilitated a surge in Shiba Inu. The crypto community’s second favorite dog-inspired memecoin and self-proclaimed “Dogecoin killer” is up more than 13% in the last 24 hours according to CoinMarketCap data, making it the best performing crypto in the top 20 and fitting of the title of coin of the day.
SHIB/USD is currently trading just to the north of the $0.0000115, up around 41% on the week and up more than 60% versus earlier monthly lows just above $0.000007 per token, giving it a market cap of just above $6.3 billion, the 13th largest of any cryptocurrency. Shiba Inu’s rally this week has seen is surge above both its 21-Day Moving Average (at $0.0000095) and most recently its 50DMA (at $0.0000112).
SHIB Dip Buying
This week has clearly marked a turning point in Shiba Inu’s near-term technical momentum and could indicate that the retail investors who drive SHIB price action are fishing for a bottom after the token fell back into its mid-2021 ranges earlier this month. A surge in the number of SHIB holders to nearly 2 million as of Friday from under 1.2 million one week ago according to data published by Twitter account @letsburnshiba supports this thesis. Meanwhile, according to Whalestats, the SHIB token holdings of the top 100 largest Ethereum wallets (SHIB is an ERC-20 token) have surged to nearly $600 million.
The SHIB/USD bulls face some barriers to further upside. This week’s high at just below $0.000012 looms just above current levels. Then there are some late-May highs in the $0.0000125-0.000013 area. But if the cryptocurrency can clear these hurdles, there isn’t much stopping it (in terms of technical resistance, anyway) from rallying all the way back to test the January lows just above $0.000017. That would be a further nearly 50% rally from current levels.
Though Shiba Inu faces significant criticism for its lack of utility, it has a track record of being able to attract significant speculative flows. Given the cryptocurrency’s large and dedicated fanbase and massive social media presence, placing big bets against SHIB could be risky.
Indeed, it doesn’t take much to get Shiba Inu investors’ juices flowing. Some cited this week’s upside as being driven by a new proposal by the token’s developers last Sunday to change how the ecosystem’s BONE token is used on the ShibaSwap platform. According to the proposal, the BONE token, the ShibaSwap platform’s governance and utility token, could in the future be used as fees to perform actions in the soon-to-be-released layer-2 Shibarium protocol.
Once launched, SHIB tokens will migrate to Shibarium from the Ethereum blockchain, with developers saying that this should significantly lower gas fees associated with SHIB transactions, as well as introduce a burn mechanism. Shibarium is expected to be launched later in 2022 and, broader crypto market conditions allowing, there is every chance that Fear Of Missing Out ahead of its launch could send SHIB flying higher.
This article was originally posted on FX Empire
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