The buoyant anticipation fizzled to turbulence this week as a flood of transactions flabbergasted the newly launched Shibarium, causing a severe 28% plunge in SHIB price. A pattern frequently seen in grand crypto launches, where it’s a common strategy to ‘buy the rumour, sell the news’, the Shibarium launch was met with an influx of transactions so dramatic, that it literally froze the network. This led to almost 954 ether (ETH) and a substantial $750,000 of BONE – Shibarium’s governance token – stuck in limbo.
For perspective, Shibarium, just half an hour into the launch, had burned through 160+ million of their provided 400 million compute units monthly scaling service from Alchemy. If that phase had persisted, they would be logging billions of compute units daily, challenging arguably the busiest L2 blockchains such as Ethereum.
Despite the chaotic news, SHIB’s weakening started four days ahead of the launch. By the time Shibarium’s complications ignited the cascade, SHIB had already depreciated by 6.8% within mere three days. The 200DMA, a crucial marker for SHIB, offers an explanation for the extent of SHIB’s losses, with support falling in line with the Shibarium freeze.
Interestingly, the downside movement could be favourable for SHIB’s technical structure following the Shibarium episode. The RSI has dropped to a significant 40. An indication of moving from ‘overbought’ to ‘oversold’, suggests the possibility of a resumption of upside.
Amid the downside, SHIB’s target now leans towards reclaiming its position above the 200DMA at $0.00001. Meanwhile, SHIB seems to maintain decent support at $0.0000075, a tested and reliable support level. This provides SHIB with a risk-reward ratio of 1.75, with substantial optimistic prospects.
In the world of meme coins, new entrants like Sonik Coin ($SONIK) are rapidly drawing attention. Sonik Coin is paving the way with an audacious aim of being the fastest token to hit a $100M market cap. An alluring 50% of its colossal 300 billion $SONIK supply has been allocated for early investors. With each token priced at merely $0.000014, it provides the perfect entry for enthusiasts ahead of its Uniswap post-presale debut.
There’s more than meets the eye with Sonik Coin, with their daring 4,300% APY staking model, and the infectious buzz around its branding, something is brewing and it could soon follow the footsteps of Pepecoin’s astronomic growth, which delivered over 10,000% returns to early investors.
Crypto, being a high-risk asset class, whoever dares to ride the wave might enjoy great rewards, but remember, high potential returns always come with high risk.
Source: Cryptonews
