Shiba Inu (SHIB) Price Analysis and Prediction: Why Is SHIB Falling Despite Ecosystem Developments?

The various developments in the Shiba Inu ecosystem have aligned very well with the market movement. As soon as Bitcoin started moving up since

Shiba Inu (SHIB) has seen a massive surge in the last two days, rising over 45%. This surge comes as Bitcoin started moving up from September 26. But what is causing this sudden fall in Shib price now, let’s analyze.

Shiba Inu Price Surges Over 45% In 2 Days

On September 25, Shiba was trading at $0.00001503. As soon as Bitcoin started the uptrend, Shiba also took the support of moving average 50 and started to surge, as per hourly shib chart. It reached a peak at $0.00002169 before plummeting 8%. The fall price received support from the 20 hourly moving average.

Shiba Inu had to retrace its steps due to multiple reasons. The first reason is the presence of resistance at $0.00002230. This particular zone has played as a good support in the past and hence it now has become a resistance. Another reason is the presence of 200 daily moving average just above the current trading price of shib i.e. $0.00002013.

In addition to these reasons, the RSI is also giving the overbought signal. To balance this Shiba Inu either has to stay in a consolidation zone or take back some steps. The area around $0.00001930 is a good support and can hold the price in case of a price drop.

Shiba Inu Investors In Profit At Current Price

According to the data by IntoTheBlock, 57% of the shib investors are in profit at the current price. 36% are still in loss however there are 7% investors who bought Shiba Inu at the current price. Another reason for the price drop is the presence of around 145.65k shib wallets holding around 49.21 trillion tokens. These are the people who are still waiting to enter the profit zone. They have made their investment between the price range of $0.000024 to $0.000030.

Major Developments Boosting Shiba Inu Price

The Shiba Inu ecosystem has seen some major developments in recent days. Shibarium has just undergone a major upgrade and a hard fork, launch of partner K9 mainnet, whales buying and moving out large volumes of Shib tokens and a lot more are happening in the ecosystem. All these are supporting the rise of price.

This has also caused a high surge of total liquidity locked in the Shibarium network. At the time of writing, DefiLlama data shows there is a total of $3.98 million in total value locked on shiba inu blockchain.

What To Expect Next From Shiba Inu?

With such a dedicated project team, so many developments, and a rise in shib burn rate, it is indeed on the path of rising. Also, do not forget that the shib team is also working to launch a stablecoin on shibarium, SHI. All these factors give confidence to the community to be more supportive and hence the token will rise not just in popularity but in price and utility as well.