- Shiba Inu price is currently treading water above two critical support areas, awaiting a 50% run-up.
- The recently launched ShibaSwap DEX is a key factor in making or breaking the meme coin.
- A highly anticipated virtual party could be crucial in deciding where the dog-themed crypto will go.
Shiba Inu price has been consolidating like most of the altcoins but has provided healthy moves to capitalize on. SHIB is currently trading above two significant support barriers that could have triggered massive rallies in the past.
Piggybacking off the meme coin hype and successful launch of ShibaSwap DEX
Shiba Inu was among the plethora of dog coins that spawned during the recent bull run. These coins siphoned popularity from the old meme coin – Dogecoin – but SHIB was the one that made it out alive after the massive crash on May 19.
From rapper Meek Mill to boxer Ohara Davies, Shiba Inu was heavily hyped.
I’m about to buy some shiba inu coins 💎
— Meek Mill (@MeekMill) May 23, 2021
Elon Musk’s mentions of Shiba Inu helped the coin, but unlike other dog-themed cryptocurrencies, this meme coin had plans, a hard cap on its supply, which made it stand out from the rest.
This concoction led Shiba Inu to be listed on Coinbase, a major achievement for the altcoin.
Another significant milestone was the launch of the ShibaSwap decentralized exchange (DEX), launched on July 6. Interestingly, the exchange saw $1 billion in total value locked (TVL) on the first day of its launch and hit $1.5 billion the next day.
Unlike most DEXs, ShibaSwap underwent a full audit by Certik, which adds credibility to the launch and potentially explains the massive TVL. However, pseudonymous Twitter user “Banteg” pointed out that the DEX could easily “pull the rug” on its users.
Minimum Viable ShibaSwap Rug
All liquidity can be easily stolen by a single address. Why did people put over $120 million in it again? pic.twitter.com/ONOKyYbjts
— banteg (@bantg) July 6, 2021
At the time of writing, the TVL is still hovering around $1.5 billion, with three new pairs added to the platform on July 12.
While these developments are crucial, the retail is mostly anticipating the virtual event scheduled on July 20. This plan was first announced by a Shiba Inu influencer who goes by the Twitter screen name “Shytoshi Kusama” on July 6.
I am so excited to announce that we are throwing a Virtual Shiba Inu Party in 2 weeks featuring an amazing DJ set by @garethemery! Not only that… the set comes with an NFT AND physical sculpture that will be stored in a location TBA so #ShibaArmy can see it.
— Shytoshi Kusama (@ShytoshiKusama) July 6, 2021
Interestingly, from a technical perspective, Shiba Inu price looks ready to reverse, which adds credence to the optimism around the upcoming virtual party. While investors could be looking forward to the July 20 event, things could turn awry really quickly if the holders are not careful.
Shiba Inu price anticipates massive upswing
Shiba Inu price has dropped roughly 33% over the past week to where it currently stands, $0.00000690, just above a stable support floor at $0.00000654. A breach of this level will push SHIB down to the subsequent demand barrier at $0.00000625.
Investors need to note that an upswing could originate at either of the levels mentioned above. In some cases, Shiba Inu price might continue to head lower until it retests the range low at $0.00000518, where the buyers could ignite a rally.
The first target where investors could book profit is the 50% Fibonacci retracement level at $0.00000870. If the bid orders continue to pile up, SHIB could tag the lower end of the high probability reversal zone at $0.00000954 coinciding with the 62% Fibonacci retracement level.
This move would constitute a 50% run-up from $0.00000625.
SHIB/USDT 6-hour chart
While the upswing narrative seems likely and plausible, investors need to exercise caution as peak FOMO, or retail hype, generally leads to massive corrections.
A perfect example of this is Dogecoin holders’ disappointment during Elon Musk’s much-anticipated appearance on Saturday Night Live on May 8. Dogecoin price, which was expected to pump, reversed and corrected 42% between May 8 and May 9.
Similarly, Shiba Inu price might appreciate the days leading up to the virtual party on July 20, but it is likely to dump on or during the event. If this were to happen, leading to a breakdown of the range low at $0.00000518, it would deter the uptrend.
If the buyers fail to push Shiba Inu price higher and reclaim the said level, it will invalidate the bullish thesis and potentially trigger a 20% correction to $0.00000420.