The SHIB price is experiencing a downturn, mirroring the broader trend in the market, as many cryptocurrencies are ending the week with losses. This decline follows the recent decision by the US Securities and Exchange Commission (SEC) to postpone the approval of spot Bitcoin ETFs on Thursday.
The second most notable meme coin is currently trading at $0.00000796, marking a 3.2% drop within the past 24 hours. This sell-off has driven the trading volume up to $133 million while causing a dip in market capitalization to $4.6 billion.
SHIB Price Seeks Support Amid Volatility
Shiba Inu investors have faced a challenging period since the pre-Shibarium upgrade rally, which saw prices reach $0.000011. However, instead of experiencing a post-launch rally, investors had to cope with losses stemming from scalability issues that forced developers to temporarily halt the protocol.
The Shiba Inu live price initially lost support at $0.00001 and subsequently found some stability around $0.00008. After a week of consolidation, another downside movement weakened the immediate support level.
Currently, SHIB's price is expected to establish $0.000008 as a support level once again. This would allow for the development of fresh momentum towards surpassing the $0.00001 mark.
Trading Outlook and Strategy
Investors are likely to consider new long positions in SHIB if they are confident that another sell-off won't erode their holdings below the lower ascending trendline. However, if declines extend below this critical level, traders may opt for increased exposure to short positions, targeting support at $0.000007 and $0.0000064.
While the Moving Average Convergence displays a bearish outlook, a potential buy signal is on the horizon. Therefore, it may be prudent to await resolution in SHIB's price action before committing to either buying or selling.
The path of least resistance is expected to shift towards $0.00001 if the MACD line (blue) crosses above the signal line (red). Traders should ensure that the momentum indicator aligns with an upward trajectory alongside the buy signal to confirm the validity of the uptrend. Key milestones en route to $0.00001 include support/resistance at $0.000008, the upper dotted trendline, and the 200-day Exponential Moving Average (EMA) (purple) at $0.000092.
Shibarium Achieves Significant Milestones
Shiba Inu's layer two (L2) solutions protocol, Shibarium, has been hitting important milestones since its relaunch earlier this week. According to the Shibarium explorer, the number of created wallets has now exceeded 600,000 and is expected to reach 1 million in the near future.
Shibarium has processed over 705,000 transactions with an average block time of 5 seconds and has accumulated over 401,000 total blocks. Despite facing initial challenges during its launch, the protocol, supported by tokens within the ecosystem, is anticipated to have a substantial impact and may contribute to the token burn program.
The Shiba Inu community is actively working to reduce the circulating supply, aiming to enhance the token's supply and demand dynamics in preparation for a potential rally in the next bull market. With the growing adoption and interest in Shibarium, it is only a matter of time before the community reaps the benefits of holding SHIB for the long term.
