After rebranding Twitter to “X” and adding the Dogecoin ticker logo to his bio, Elon Musk has now turned his attention to another popular meme coin: Shiba Inu (SHIB). Musk’s latest move – directly mentioning Shiba Inu in a tweet – has been bullish as it resulted in a quick surge of buying pressure for the meme coin, leading to a spike in its price. However, following the initial surge, Shiba Inu’s price has now declined and stabilized into a consolidation phase, bringing a ‘calm before the storm’ moment.
Shiba Inu Shows Notable Actions
Elon Musk, the CEO of Twitter, surprised everyone by mentioning Shiba Inu in a tweet about logos for the X app, the new name for Twitter. He noted that they once temporarily changed the logo to a Shiba Inu dog.
Following this news, Shiba Inu soared from 19th to 17th position in market capitalization rankings, overtaking Avalanche. This shift, with Avalanche now at 18th and Shiba Inu at 17th, shows the impact of Elon Musk’s influence within a single day.
Moreover, despite the broader crypto market’s sluggish performance, Shiba Inu stands out with its increasing token burn rate. Token burn, a strategy to permanently eliminate a portion of the circulating supply, can create artificial scarcity and potentially boost the price if demand stays steady or rises.
Despite challenging market conditions, the Shiba Inu ecosystem is showing signs of growth, with an increasing token burn rate indicating robust network activity. Beyond its fame as a “meme coin,” Shiba Inu stands out due to its community-driven initiatives, contributing to its deflationary nature.
One of the key developments in the pipeline is the launch of Shibarium, Shiba Inu’s own blockchain. This is expected to enhance scalability, reduce transaction fees, and promote the development of dApps.
What’s Next For SHIB Price?
SHIB’s price made a notable breakout today as it surged toward $0.000008. However, it witnessed massive selling pressure near this level and dropped below the 23.6% Fib channel. Despite attempts by bearish traders to drag SHIB’s price under the breakout level of $0.0000078, bullish investors maintained their stance.
The 20-day Exponential Moving Average (EMA) for Shiba Inu, currently at $0.0000078, shows no volatility, hinting at a stable momentum between bears and bulls now. The Relative Strength Index (RSI) is in the positive territory near the midline, suggesting that bulls still have control. However, minor resistance is anticipated above the upper trend of the triangle pattern at $0.000008, where sellers are likely to put up a significant fight.
If bullish investors manage to keep the price above $0.0000083, the chances of a surge to $0.1 become more probable. This bullish outlook will be short-lived if the price drops and remains below $0.0000075.