Shiba Inu, a digital token, disappoints its investors by experiencing an 8% decline in value after the shibarium mainnet launch.
Here’s What We Know
This event was expected to boost the token’s value, but instead, it faced technical problems that hindered its growth. Shiba Inu’s price dropped below $0.00001, contrary to what investors had hoped for.
The launch of the anticipated Ethereum Layer 2 protocol, Shibarium, did not result in the expected rally. As of Thursday, SHIB is trading at $0.00000908, and it might continue to drop, possibly reaching lower support levels at $0.0000075 and $0.0000065.
Shiba Inu Fails to Rally After Shibarium Mainnet Launch
From mid-June until August, Shiba Inu showed promise as its value increased from $0.000006 to a high of $0.00001130. Investors anticipated a rally after the launch of Shibarium’s mainnet and positioned themselves accordingly.
However, the launch did not produce the desired effect, which suggests that the event had already been factored into the token’s price. Technical issues further worsened the situation.
A Chinese crypto reporter named Colin Wu shared information that the Layer 2 protocol experienced block production stoppages. According to monitoring data from Beosin, around $1.7 million worth of Ethereum was locked within the Shibarium cross-chain bridge.
This news concerned the SHIB community, especially after a successful test run that achieved 21 million wallet addresses on the testnet. Although Shibarium briefly went back online, recent block count data indicates that the protocol has been inactive for about five hours.
Developers are currently working on resolving the issue of assets trapped on the bridge. The community worries that these challenges might be just the beginning, potentially leading to security, safety, and scalability problems. Beosin advised investors to avoid using the Shibarium protocol until these issues are fully addressed.
Shiba Inu’s Value Drops – An Opportunity to Buy the Dip
While the problems faced by Shiba Inu are not minor, they have left the meme coin vulnerable to losses. This vulnerability, coupled with the fear of losing recent gains, has prompted investors to continue selling their holdings.
Reports indicate that much of the selling pressure comes from large holders of SHIB, LEASH, and BONE tokens. The easiest path for the token’s value would likely be upwards, as indicated by the Moving Average Convergence Divergence (MACD) indicator showing a new sell signal.
Traders looking to take short positions on SHIB may wait for its price to drop below the initial support level of $0.000009. This can be confirmed by the blue MACD line crossing below the red signal line.
There is a chance that Shiba Inu might find support at the confluence point of the 50-day and 100-day Exponential Moving Averages (EMA) at $0.000008724. However, if losses persist, investors might need to prepare for SHIB’s value to test even lower support levels at $0.0000075 and $0.0000065.
Despite the challenges, a potential rebound is not out of the question. Shiba Inu could present “buy-the-dip” opportunities for investors willing to try for another rally attempt, possibly reaching $0.00002.
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