Shiba Inu is now one of the top 20 cryptocurrencies, with SHIB price up 300% in 9 days

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The Shiba Inu (SHIB) price rise so far in October has made the SHIB token the 20th largest digital asset by market capitalization.

Shiba Inu’s circulating market valuation rose to $ 11.08 billion earlier this week and is currently over $ 10 billion, making it in the top 20 by market cap for the first time. As a result, the Dogecoin-inspired meme cryptocurrency became more valuable than popular blockchain projects like Stellar (XLM), Polygon (MATIC), and Tron (TRX).

SHIB market capitalization versus price. Source: Messari

The rise in Shiba Inu’s rating came after a tweet posted by Elon Musk. On October 4th, the Tesla CEO published the picture of his dog – a Shiba Inu breed – with the caption “Floki Frunkpuppy”. SHIB jumped more than 40% an hour after the tweet.

Crypto speculators tend to read too much on Musk’s tweets. For example, the billionaire entrepreneur was instrumental in driving up the Dogecoin (DOGE) price via Twitter in early 2021.

The SHIB price rose nearly 400% after opening the fourth quarter of 2021 to $ 0.00000725 per week. The token retested its five-month high of $ 0.00003528 on October 7th.

Still, SHIB experienced a price correction of over 40% on the same day as some traders decided to liquidate their spot positions for interim profits. As a result, Shiba Inu’s market capitalization fell at the same time, reaching only $ 8.06 billion in October.

SHIB / USDT daily price chart. Source: TradingView.com

The sell-off in the Shiba Inu markets against the dollar and Bitcoin (BTC) created a buy-the-dip sentiment. A recovery rally followed that pushed the SHIB price up by more than 45%. At its highest level on October 9, the token changed hands for $ 0.00003020 with a market capitalization of around $ 10.73 billion.

What’s next for SHIB?

Shiba Inu price fell more than 5% on October 9, hitting a new intraday low of $ 0.00002575. In doing so, the cryptocurrency indicated the formation of a possible descending triangle pattern, indicating further losses ahead.

Related: “Much ow” in front of us? Dogecoin chart fractal puts Shiba Inu’s 390% QTD rally in jeopardy

In detail, descending triangles are typically bearish patterns that form when price travels down while fluctuating between an area defined by two converging trend lines: one falling and the other horizontal, as shown by SHIB in the chart below .

SHIB / USDT four-hour price chart with a descending triangle setup. Source: TradingView.com

The formation of lower highs on a standstill support line suggests weaker buying sentiment among traders. As a result, the price ultimately tends to break below the horizontal trend line. His goal is shifted to a level with a length equal to the maximum triangular height.

In other words, the SHIB price may drop below $ 0.00001000 in the coming sessions if the above support level is not maintained.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.