The crypto market has shown interesting dynamics recently, notably the SHIB token price, witnessing a plunge of more than 7.5%. The sharp drop to $0.00000888 follows the public launch of the eagerly-awaited Shibarium layer-two network which seems, for the time being, to have failed to meet bullish expectation.
The previous week has seen SHIB drop by 9%, mainly attributed to Shibarium’s launch overshadowed by numerous technical hitches. Interestingly, it’s claimed that around $2.5 million worth of funds have reportedly squandered on bridges to/from Shibarium. Trust in the network’s reliability and safety have understandably been rattled.
Such technical glitches, unless promptly rectified, may force SHIB’s price further down its current slope. It’s clear that Shibarium’s introduction faltered, breaking the momentum of anticipation, with both its price and indicators taking a sharp dip. Unsurprisingly, the token’s relative strength index (RSI) has shrunk from over 70 to nearly 50. If its RSI continues to wane, reaching perhaps 30 or 20, we might witness SHIB’s price weaken even further.
Simultaneously, SHIB’s 30-day moving average appears to stagnate and seems on the brink of another downward trend, despite not yet reaching its 200-day average. The medium-term support level is cautiously poised at somewhere near the $0.00000830 level. If the current trends continue, it seems likely we may observe a failure there.
Unfortunately, Shibarium’s launch did not unfold as hoped, as $1.7 million in Ethereum went astray on one of the layer-two network’s bridges. Shibarium’s launch was also tainted by technical glitches including syncing nodes failing and account balances inaccurately reported. These hiccups could prove detrimental to its prospects of mainstream adoption as a key layer-two network.
Such underwhelming performance combined with whales rumoured to be unloading their BONE and SHIB supplies, suggest SHIB might continue its plummet. This would imply that SHIB could reset to its beginning-of-the-year level of $0.00000810, or nosedive further to $0.0000070 in the coming weeks or months.
While the precipitous descent of SHIB paints a gloomy picture, the landscape isn’t wholly devoid of opportunities. Loaded with potential, the entry of new meme tokens into the crypto bazaar could be enticing for traders looking for quick gains. Take Sonik Coin (SONIK), an ERC-20 meme token, for example. With its presale launched this week, it exhibits potential for substantial rallies in the near future.
SONIK’s tokenomics provide a level of decentralization that could incentivize investors to support it. And, given Sonic the Hedgehog’s place in popular culture, backed with an appealing narrative and a community-integrated platform, SONIK coin holds a promising future.
However, it is essential to bear in mind that while crypto holds vast potential, it is also high-risk. As investing in any asset class, consider conducting your own workout before venturing into investing. You could lose all of your invested capital.
Source: Cryptonews
