- Shiba Inu price dropped over 11% since August 24 after slicing below a critical support trend line.
- The governing technical pattern suggests that SHIB is vulnerable to further collapse.
- Only if Shibu Inu manages to sustain above $0.00000759 can it be saved from the prevailing bearish target.
Shiba Inu price has suffered a 22% drop from its swing high on August 17 as it continues to lose momentum. Although the SHIB offered an indecisive outlook with the recent technical pattern emergence, the canine-themed token is headed lower following a break below a key support level.
Shiba Inu price loses momentum
Shiba Inu price presented a symmetrical triangle pattern on the 4-hour chart that confused investors with its directional intentions.
On August 24, SHIB sliced below the base of the technical pattern, making the token vulnerable to a measured move downward of 12%. On the same day, Shiba Inu price also fell below the 100 four-hour Simple Moving Average (SMA), further adding credence to the bearish thesis.
The pessimistic narrative gives Shiba Inu price a downside target at $0.00000714, coinciding with the 61.8% Fibonacci retracement level.
However, before the bearish target materializes, SHIB is also scrambling for support at the 50% Fibonacci retracement level at $0.00000759.
Should Shiba Inu price close below this point, the next line of defense could be unraveled at the 200 four-hour SMA at $0.00000726. Slipping below this level would eventually see SHIB tag the aforementioned target given by the prevailing chart pattern.
If selling pressure continues to increase and the buyers fail to step in at any point, Shiba Inu price may discover further support at $0.00000686 before crashing lower to the 78.6% Fibonacci retracement level at $0.00000651.
SHIB/USDT 4-hour chart
Should the bulls attempt to reverse the period of underperformance, Shiba Inu price must climb and stay above the 50% Fibonacci retracement level for any hope of a trend reversal.
Bullish investors could aim to tag the 38.2% Fibonacci retracement level at $0.00000803 as the next target before claiming the 100 four-hour SMA at $0.00000809.
Assessing the odds of Gensler, SEC targeting DOGE, SHIB next
In one of our recent commentary issues, we analyzed why sticking it to Coinbase and Ripple wasn’t really the best move on the SEC’s part. In this month’s issue, however, we’ll be assessing which class might end up being the next target of the same regulatory agency.
In April this year, when the Senate confirmed Gary Gensler as the Chairman of the Securities and Exchange Commission, most people from the U.S. crypto-community seemed to be quite relieved. It’s a well-established fact that investors from the States have been plagued by clouds of regulatory uncertainty for long periods now.
After exhibiting a keen interest in the crypto-space, referring to blockchain technology as a “catalyst for change” and teaching about the same at MIT, Gensler was expected to deliver as soon as he was handed over the baton. However, the SEC chief has predominantly remained ambivalent. Less than a month back, for instance, he ended up equating stablecoins to poker chips.
Even though his broader perception mostly seems to be anti-crypto, his crafty persona and schematic plans, in conjunction, have managed to fill in the otherwise regulatory void.
In fact, Gensler recently ruled out the probability of the U.S. implementing a crackdown on crypto, similar to that of China. Effectively, the space has been provided with a certain degree of decisiveness. At the end of the day, some certainty is better than uncertainty, right?
Too much on the chief’s plate
By and large, the SEC has been given the responsibility of overseeing the corporate sector, capital market participants, securities, and investment markets. The comparatively novel crypto-space, in retrospect, is just an infinitesimal part of the agency’s broader regulatory ambit.
Being the head of the SEC, Gensler is obviously expected to bifurcate his attention. So now, as far as Wall Street is concerned, the chief has quite ambitious plans. In fact, the SEC has been laying out one of the most solid agendas in its history.
However, the 49-odd proposals lying on the table have already invited opposition from public companies, exchanges, and brokers, among others. Even so, Gensler continues to remain undeterred. In fact, he has started laying out renewed regulatory plans for other financial sub-sectors as well.
What’s more, the Chief recently went on to assert that he is confident that the SEC could move ahead on “many issues” at once. After emphasizing that everything is at the “top” of the list, Gensler underlined that he had no priorities as such. He said,
“Don’t ask me about my three daughters and which one I spend more time with.”
No favoritism indeed
To a fair extent, the Chief has honored his word. Leaving aside the Wall Street developments, a major crypto-related stride was made of late.
People in the States had been waiting for a Bitcoin ETF to be approved for ages. Quite surprisingly, the SEC gave a green flag to Volt Equity’s Crypto-Stock ETF less than a fortnight back. Even though this was not exactly what the crypto-industry had been waiting for, the approval was well-received with pomp and excitement.
After Gensler’s recent comments on how he isn’t opposed to the idea of a Futures-based Bitcoin ETF like that of Valkyrie or BlockFi, analysts now believe that actual BTC ETFs would also get a nod sooner rather than later.
That, of course, is great news. So, what next? Would the SEC and Gensler continue dedicating more time to the crypto-space?
Reading between the lines, it can be claimed that the SEC, under Gensler, aspires to legitimize the crypto-ecosystem by lending it further credibility.
Strictly sticking to recent developments and Gensler’s assertions, one can infer that the crypto-space wil end up becoming even more streamlined in the future. The progress, however, needs to be taken with a pinch of salt because people in power, more often than not, end up changing their stance by sugarcoating it with sheer diplomacy.
Gensler’s ‘DADDY’ issues
Well, people usually take a dig at bureaucrats for their ‘bossy’ and ‘commanding’ nature. Quite recently, Senator John Kennedy questioned Gensler about why he acts like a “daddy” of the people and companies he regulates as Chairman.
Reverting back to the same, Gensler highlighted that he is merely trying to take the oath of office seriously and intends to “promote investor protection” and “facilitate capital formation.”
Classic Gensler response!
His sober explanation to the question above is an authentication of the non-impulsive approach he employs. Throughout the Q&A session, in fact, Gensler did exhibit ‘fatherly’ traits by correcting the Senator’s misconceptions and gleefully acknowledging the concords.
His ability to debunk fallacies and parallelly recognize the actual essence of the same aspect would come in handy in the final stages of crypto-regulatory drafting. He’d be THE perfect devil’s advocate.
A lot has happened in the financial space this year. One key area that is yet to be under Gensler’s focus is the equity market’s ‘meme-stock’ subset.
The unbelievably high trading numbers have put firms like Robinhood and Citadel Securities at risk. Congruently, the hype-driven surges of AMC Entertainment and GameStop have also amassed political attention. If the proposed regulations lying on the table end up being excessively intense, it’d only result in bizarre consequences for both the firms and their investors. In effect, the future prospects would be massively dented.
With meme-stocks already under the radar, it perhaps shouldn’t be a surprise if the meme-coin category from the crypto-space gets targeted next. Owing to Musk’s SNL appearance, DOGE made headlines earlier this year while SHIB’s recent price movements offer another testament to the typical ‘pump and dump’ nature of such coins.
Thus, to foster its investor protection agenda, the SEC might as well target DOGE, SHIB, and other coins in the same meme boat. The ripple effects would obviously be unfathomable – HODLers would get ‘rekt,’ a lot of capital will be drained out, and the space will end up losing a fair share of its credibility.
However, there’s a silver lining to this too.
Talks are going on that Gensler might end up delegating a part of the regulatory responsibility to other financial bodies. Decentralized cryptos have a high chance of being overlooked by the CFTC while banks could be thrust with the responsibility of stablecoins. In effect, the SEC might solely end up assuming the responsibility for other tokens that share characteristics similar to that of investment contracts.
If such a bifurcation indeed happens, where would meme-coins fit? While some argue that the value of dog-themed coins is sort of pegged to Musk’s tweets (DOGE and FLOKI, for instance), their values seldom remain stable. Ergo, the stablecoin category is ruled out for now.
Also, it’d be a joke if they’re equated to investment contracts and would be an insult to other decentralized projects if they’re brought under the same umbrella.
We’re eventually left with no option… Looks like Gary would have to set up the Meme-coin Board of America [MBA] to solely cater to the meme-coin subset!
Banter aside, if meme-coins manage to find a safe haven within the regulatory cracks, then, well and good. Nevertheless, if they fail to do so, the joke will be on them because illegitimate projects will be swept out of the space. In retrospect, the same would be a blessing to amateur investors who blindly pour capital into their so-called favorite meme projects.
Nothing less than a nightmare though
Ripple is already fighting a legal battle against the agency and Uniswap has also been targeted. Even though there hasn’t been any outright official proclamation of meme-coins being the next casualty, market participants need to remain wary.
According to a recent Bloomberg report, executives who’ve met with the SEC officials have been “privately cautioned” that the broader financial market structure rules being developed may be “extreme.” On any day, such oblique warnings coming from ‘inside’ the agency shouldn’t be taken for granted.
Now, one might argue that the executives are talking only about traditional market regulations. Oh, you wish!
Signing off by dropping the truth-bomb:
The Biden administration is only beginning to ramp up regulatory scrutiny around cryptocurrencies, according to a senior White House official.— *Walter Bloomberg (@DeItaone) October 12, 2021
Shiba Inu NFTs sell out in 35 minutes as gas fees anger users
- 10,000 Shiboshi NFTs sold out in 35 minutes.
- Holders angry over high gas fees.
- Shiboshi NFT is already selling on OpenSea, indicating a strong recovery for SHIB.
Shiba Inu’s first NFT launch on its decentralized platform ShibaSwap was a massive hit. The platform sold out all of its 10,000 Shiboshi NFTs in just over half an hour.
Since last week, it was evident that the Shiboshi NFT launch will be big. First, the Elon Musk tweet boosted SHIB prices. Then LEASH price also went up to $2932, indicating that the market was extremely bullish towards Shiba Inu as we neared the NFT launch date.
Also, all of the 10,000 NFTs were only available to be purchased in LEASH. So, holders of the Doge Killer rushed to get their hands on at least one of these NFTs, resulting in a clean house in just 35 minutes. However, it wasn’t a happy ending for everyone.
Shiba Inu receives backlash from angry holders
After the launch, Twitter was filled with posts from angry users who spent hundred in gas fees but still couldn’t land a Shiboshi NFT. One user complained that he lost $2400 in gas price without getting a single NFT, while others lost hundreds of dollars.
Shibarium explained the issue on a Twitter post, saying that massive gas fees were due to the insane pressure on the ETH blockchain. The tweet also promised that Shiba’s developer team are building the Shibarium blockchain as a solution.
If you’re not familiar with gas fees, it’s the amount of electricity and computational power required by miners to process and validate each transaction on the blockchain. Gas fees are kind of an incentive to the miners.
The high traffic on the Ethereum blockchain due to the Shiba Inu NFT launch, and the fact that thousands of transactions were processed and validated within 35 minutes, led to this frustrating increase in gas fees.
However, developers and traders are positively hopeful that Shibarium’s own blockchain and the Ethereum 2.0 upgrade will solve these problems in the future.
The post-launch state of Shiba Inu NFTs
The 2900 holders that were successful in securing a Shiboshi NFT has already started trading on OpenSea. The Shiboshi #2 NFT was bought for 0.9 ETH, was sold for 25 ETH (almost $95000) on the NFT platform.
With all the craze going on, holders of the NFT are certain to see some amazing returns on their investment. At the moment, SHIB is down by 13%, but the market is expected to rise against all the trades on the NFT marketplace.
Shiba Inu is reportedly working with a major AAA game studio to develop the SHIBOSHI game. All of these trends indicate that we will continue to see a bull run from this meme token.
Whale Grabs 74.9 Million SHIB On the Dip After It Dropped $600 Million of Its Market Cap
According to an article by FXstreet, a large crypto investor has purchased a massive amount of Shiba Inu meme cryptocurrency—74.9 million SHIB tokens—after the price of the asset plummeted on Oct. 14 and SHIB declined from 14th place to 21st place on CoinMarketCap.
Since Oct. 11, Shiba Inu has lost around two billion dollars of its market capitalization, dropping from $12 billion to $10 billion.
Whale buys over $1.9 million of SHIB
Recently, the meme-coin inspired by the Shiba Inu dog breed and proudly called a “Dogecoin killer” by its growing community has become a crypto trend and demonstrated a rally of more than 300% in one week.
On Oct. 7, it reached a high of $0.00003314. However, it was still almost 30% below its all-time high of $0.00004999 achieved on May 10.
By now, SHIB has declined by 31.95%, trading at 0.00002404 on Binance.
Meanwhile, as the coin plunged, a cryptocurrency whale invested almost $2 million, buying Shiba Inu. As reported by U.Today earlier, this is not the first whale to purchase eye-popping amounts of SHIB recently.
Before the aforementioned rally started, another anonymous whale purchased the first six trillion SHIB in a single transaction, and two days later bought three lumps that totaled 276 billion coins. Experts believe that these purchases were among the reasons for SHIB’s 300% rally.
Shiba Inu listed in India, Turkey, Austria
As reported by U.Today earlier, Shiba Inu has recently been listed on the oldest crypto exchange in India—ZebPay—which serves over four million customers on a regular basis.
Last week, support for SHIB was also added by Austria-based fintech company Bitpanda, which was funded by billionaire Peter Thiel’s venture investment firm. Recently, the news has spread that the largest crypto exchange in Turkey, BtcTurk, also plans on listing this Dogecoin rival soon.
As a reminder, earlier this year, two major crypto exchanges also began trading SHIB—Coinbase (in September) and the Binance crypto giant (in May, when the coin reached its all-time high).
According to recent data published on Twitter, SHIB has been getting more mentions than Bitcoin, Ethereum, DOGE, ADA and other top 10 altcoins. Besides, a lot of investors in meme-coins prefer Shiba Inu to FLOKI.