The Shiba Inu (SHIB/USD) coin price strong rally has stalled as it enters its distribution phase. The coin is trading at $0.000028, which is about 22% below the highest level last week. This drop has brought its total market capitalization to more than $11 billion, making it the 17th biggest cryptocurrency in the world.
SHIB fundamental analysis
Shiba Inu is a relatively new blockchain project that was launched in May this year. It was launched at the height of the cryptocurrency frenzy. Shortly after its launch, the Dogecoin-killer’s price jumped to an all-time high of $0.000090. It then crashed to an all-time low of $0.000006 during the cryptocurrency sell-off.
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Shiba Inu was designed as a joke at a time when all attention was on Dogecoin. Since its founding, its ecosystem has grown substantially. The developers have launched LEASH, which is a cryptocurrency that has a limit of just 107,646 tokens. They also launched BONE, a cryptocurrency that has a limit of 250 million tokens.
Another key development was the launch of Shiba Swap, which is a DeFi platform based on Ethereum’s technology. The platform allows users to provide liquidity, through a process known as digging. They can also make money by staking their tokens through a process known as burying. Also, they can swap tokens to gain what is known as Woof returns.
The Shiba Inu price rebounded recently as investors gained interest in the so-called dog coins. This happened after Elon Musk sent a tweet about his dog known as Floki. Since then, most dog coins like Floki coin have all surged.
Shiba Inu price prediction
The hourly chart shows that the Shiba Inu price has been in a tight range in the past few days. This is a sign that demand for the coin has waned while many of last week’s buyers have started to distribute their holdings.
The price is slightly above the ascending trendline that is shown in blue. It is slightly below the 25-period and 50-period moving averages while the MACD has moved below the neutral level.
Therefore, there is a likelihood that the price will break out lower as the distribution phase moves to high gear. This will see it decline to the key support at $0.000025.
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