Analysis – The crypto basics

Why is Shiba Coin on the rise?

Shiba Inu is a cryptocurrency that was first introduced as a memecoin, although it has attracted considerable attention in the crypto market in recent years.

In this article by The Crypto Basic, your number one source of crypto news, we attempt to examine the reasons behind the recent rise of Shiba Inu, focusing on various market analyzes and predictions.

So, Shiba Inu is an Ethereum based cryptocurrency and was launched in 2020; it has a Shiba Inu dog as its mascot and includes a range of tokens and applications, distinguishing it from its predecessor, Dogecoin.

● New number of transactions from new users

Shiba Inu’s market dynamics have been significantly affected by an influx of new users: the “New Adoption Rate”, which measures the percentage of active addresses that execute their first transaction, recently reached a 4-month high.

This high rate of new user transactions indicates a significant influx of new capital into the SHIB markets.

● Record breaking Token Burns

A remarkable increase of 1.351% in the coin burn rate within a day was observed recently, with a significant number of SHIB tokens sent to inaccessible wallets.

This reduction in circulating supply could potentially increase the token’s value and is evidence of the community’s proactive approach to influencing market dynamics.

– Advertisement –

Shiba Inu Prediction

● Short-term forecasting

In the short term, Shiba Inu shows bullish tendencies; technical indicators such as the relative strength index (RSI) and moving average convergence-divergence (MACD) indicate growing buying pressure, indicating potential for further price appreciation.

The support level for SHIB is set at $0.000008000, which provides a buffer against significant losses.

● Long-term potential

For the longer term, forecasts for Shiba Inu price are diverse: some forecasts suggest that Shiba Inu prices will range between a low of $0.0000173583 and a high of $0.0000208179 in 2023.

However, other experts are less optimistic, with WalletInvestor predicting a potential drop to $0.000000676 by the end of 2023.

On the more optimistic side, Digitalcoin predicts gradual growth for SHIB, with potential prices of $0.0000185 in 2024 and $0.0000244 in two years.

● Key factors affecting Shiba Inu’s growth

1. Community involvement

The enthusiastic SHIB community, or ‘SHIB Army’, plays a crucial role in the coin’s resilience and popularity.

2. Technical Analysis

Current bullish trends are supported by technical indicators, but sustained momentum is key for significant price gains.

3. Market sentiment

The broader market trends and sentiments significantly influence Shiba Inu’s performance.

Additional insights and developments

Shiba Inu’s collaboration with notable personalities, such as boxer Manny Pacquiao, and the launch of The SHIB magazine, contribute to its growing popularity.

Recent developments such as the boom in Shibarium transactions and increased community involvement point to a positive trajectory for Shiba Inu.

Shiba Inu’s influence on the broader crypto market

● The rise of Memecoins and community driven projects

Shiba Inu’s success is a prime example of the growing influence of memecoins in the crypto market; These coins, often inspired by internet memes and social media trends, have become popular for their community-driven nature and viral appeal.

Shiba Inu’s rise demonstrates how a strong, dedicated community can drive the success of a cryptocurrency, highlighting the power of collective belief and social media in shaping market trends.

● Social media and influencer endorsements

The role of social media and influencer endorsements in the crypto market cannot be underestimated: Shiba Inu, like many other cryptocurrencies, has benefited from significant social media exposure and celebrity endorsements.

This trend highlights the importance of media presence in cryptocurrency valuations and the potential for influencers to rapidly sway market sentiment.

● Implications for investors and the market

The rise of cryptocurrencies such as Shiba Inu underscores a shift in the crypto market towards more speculative and community-backed projects; this trend presents both opportunities and risks for investors.

On the one hand, it opens up possibilities for high returns on investment; on the other hand, it introduces increased volatility and uncertainty – investors in the crypto market should therefore be aware of these dynamics and consider the influence of social media and community sentiment when making investment decisions.

In closing

Shiba Inu’s journey in the crypto market demonstrates the dynamic and speculative nature of cryptocurrencies.

While the current trends and developments paint an optimistic picture, investors should remain informed and cautious, considering the volatile nature of the market.

In short, Shiba Inu’s rise in the crypto market can be attributed to a combination of increased transactions from new users, strategic coin burning and a supportive community.

Although its future in the market shows potential, it remains subject to the inherent uncertainties and volatility of the cryptocurrency universe.

Stay tuned for more information on the latest developments in crypto news via The Crypto Basic and don’t forget to check out our guides on all things crypto.