The previous price increase of Shiba Inu (SHIB) in October has SHIB token becomes 20th largest digital asset by market capitalization.
Shiba Inu’s stellar market valuation jumped 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, Dogecoin-inspired cryptocurrency meme became more valuable than popular blockchain projects like Stellar (XLM), Polygon (MATIC) and Tron (TRX).
Shiba Inu’s increased rating came after a tweet from Elon Musk. On October 4, Tesla CEO posted a photo of his pet – the Shiba Inu dog breed – with the caption “Floki Frunkpuppy”. SHIB rose more than 40% an hour after the tweet.
Floki Frunkwelpe pic.twitter.com/xAr8T0Jfdf
to???? Elon musk (@elonmusk) October 4, 2021
Cryptocurrency speculators tend to read too much on Musk’s tweets. The billionaire businessman, for example, was instrumental in pushing the price of Dogecoin (DOGE) on Twitter in early 2021.
The SHIB price rose nearly 400% per week to $ 0.00000725 after the fourth quarter of 2021 opened. The token retested its five-month high of $ 0.0003528 on October 7th.
However SHIB suffered a price correction of more than 40% the same day as some traders decided to reverse their spot positions in order to make interim profits. As a result, Shiba Inu’s market capitalization fell in parallel, reaching $ 8.06 billion on Friday.
The sell-off of the Shiba Inu markets (against dollars and Bitcoin) sparked a buying mood. There was a rally that drove the price of SHIB up more than 45%. At its all-time high on Saturday, the token changed hands for $ 0.00003020 with a market cap of around $ 10.73 billion.
What’s coming for SHIB?
Shiba Inu’s 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 potential descending triangle pattern, indicating additional losses in the future.
In detail, Descending triangles are typically bearish patterns formed when the price tends to fall while fluctuating between an area defined by two convergent trend lines: one descending and the other horizontal, like those formed by SHIB in the chart below.
The formation of descending highs above a stagnant support line suggests that buying sentiment is weakening among traders.. As a result, the price will eventually tend to break below the horizontal trend line. Your target moves on a plane with a length that corresponds to the maximum height of the triangle.
In other words, The SHIB price can drop below $ 0.0001000 in the next few sessions if the mentioned support level doesn’t hold up.
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