Shiba Inu [SHIB] was one of the best performers in the crypto market after gaining 382% within eight days. However, this run faltered in the first week of March as Bitcoin [BTC] bulls were unable to hold on to $70k.
AMBCrypto reported that the meme coin saw large inflows to centralized exchanges. There was hence a wave of selling, causing Shiba Inu’s prices to fall steadily in recent days.
This was in agreement with the technical analysis, which showed another 13% drop was likely.
The hype around SHIB
The renowned crypto analyst Ali stated that SHIB was seeing a surge in buying activity. Notably, there has been a large outflow of over 8 trillion SHIB from recognized crypto exchange wallets since November 2023.
Popular sports personalities like SHIB too, with Filipino boxing legend Manny Pacquiao announcing that his charitable foundation will use the memecoin’s network for fundraising.
The Manny Pacquiao Foundation will incorporate Shibarium within the foundation’s operations.
In a whirlwind of cryptocurrency fervor, meme coins, propelled by vibrant communities, have seized the spotlight.
SHIB emerged as a major player, riding the waves of community support rather than real-world utility.
Such has been the craze that in the past as well, AMBCrypto has inquired about what AI bots like ChatGPT think of SHIB.
Shiba Inu’s origins and its popularity
The tale began in 2020 when an enigmatic figure or a group, named Ryoshi, started SHIB as an ironical tribute to the eponymous Japanese dog breed, also Dogecoin’s [DOGE] mascot.
A parody of the crypto-frenzy, the project started from zero, with zero, in the spirit of creating something out of nothing. An existing community or preassembled team did not find it.
SHIB, an Ethereum [ETH]–-based ERC-20 token, quickly soared in popularity due to its charismatic ShibArmy and strategic endorsements by online influencers.
Notably, Elon Musk’s foray into Dogecoin’s world also fueled SHIB’s meteoric rise.
The ShibArmy, a passionate community, spearheaded SHIB’s success, accumulating over 27,000,000% in price from January to October 2021.
July 2021 saw the emergence of ShibaSwap, SHIB’s decentralized exchange. It marked a paradigm shift, adopting the automated market maker (AMM) model.
It allowed users to “dig” (provide liquidity), “bury” (stake), “fetch” (retrieve), and swap SHIB, LEASH, and BONE tokens.
The innovative passive income reward system, along with a six-month lock rule, brought a new dimension to the DeFi landscape.
While skeptics viewed SHIB as a pump-and-dump coin lacking real-world utility, its “Decentralized Meme Token” status found resonance within the crypto-community.
The SHIB token, encapsulated in the “woof paper,” aimed to experiment with spontaneous decentralized community building, putting power back into the hands of people.
Positioned as the “Dogecoin Killer,” SHIB is often cheered on to surpass its precursor.
The cryptic-creator and Vitalik Buterin’s involvement
Ryoshi, the mysterious creator, stirred a storm in the crypto-realm by transferring 50% of SHIB’s supply to Ethereum’s Vitalik Buterin.
The transfer of such a huge sum being gifted to an individual triggered debates around SHIB’s decentralization.
This move fueled controversy, raising questions about decentralization.
However, Buterin’s unprecedented burn of SHIB tokens worth $6.6 billion alleviated concerns and showcased SHIB’s resilience.
Source: Etherscan
The uniqueness of the Shiba Inu ecosystem lies in its colossal total supply—An astronomical one quadrillion tokens.
SHIB’s market presence expanded as it secured listings on major exchanges, including Coinbase [COIN], Binance [BNB], Huobi, and Kucoin.
American exchange Robinhood, however, remained cautious due to security concerns.
The roadmap for SHIB’s future remained shrouded in secrecy, with developers hinting at potential coin burns and a Metaverse entry, signaling continued evolution.
Shibarium dubbed “one of the best-performing networks”
In a recent revelation, NowNodes, a prominent Node operator and blockchain API developer, declared Shiba Inu’s Shibarium layer-2 solution as “one of the best-performing networks” in the blockchain technology ecosystem.
NowNodes conveyed that Shibarium has proven to be a standout performer, processing over 66 million requests since its launch in August.
Taking to X (Formerly, Twitter), NowNodes expressed enthusiasm, stating,
“Shibarium Net was one of the best-performing networks in our ecosystem this month. Our team prepared a Milestone report dedicated to the success, most recent updates, and highlights of the network.”
NowNodes had been an early supporter of Shibarium, extending its support before and after the layer-2 solution’s launch.
Shibarium’s success lies in its robust performance, making it the most utilized L-2 network in terms of providing seamless transactions to users.
Outshining competitors, Shibarium has remained active and dynamic, with users consistently initiating transactions on the platform.
The “meme coin” label continues to stick to SHIB
While Shiba Inu has often been labeled a “meme coin,” characterized by its playful dog-themed branding and community-driven nature, it’s important to note that the term doesn’t diminish its impact.
Despite originating as a meme, the token has evolved beyond its initial classification.
With a dedicated community and initiatives like the Shibarium L2 solution, Shiba Inu demonstrates resilience and innovation in the crypto space.
The “meme coin” label may overlook the substantial developments within the Shiba Inu ecosystem, reflecting a broader shift in perception from a meme-based token to a dynamic player in the cryptocurrency market.
Technical analysis of Shiba Inu
Source: SHIB/USDT on TradingView
The uptrend remained intact even though SHIB has retraced 42% from the local high at $0.000045.
To break the market structure bearishly on the 1-day chart, SHIB would need to plunge below $0.00000946, the recent swing low.
The Fibonacci retracement levels were plotted to highlight the key support levels. The 61.8%-78.6% region was expected to serve as a demand zone.
The RSI was at 53 to reflect momentum was neutral. The bears have done well in recent days to stall the buyers, who ran away remarkably quickly earlier this month. Another factor was the strong drop in the OBV.
It was near the resistance level from mid-February, even though prices were 180% higher than what they were back then.
This massive surge in selling volume showed that profit-taking activity must have been intense.
It also reflected a lack of conviction from holders, although the OBV alone is not enough to definitively conclude this. AMBCrypto’s analysis continued to reflect a bullish outlook for SHIB in the coming weeks.
The next few days could see the meme coin post more losses
Source: Hyblock
The cumulative liq levels delta was hugely negative. This indicated that a move upward to liquidate the bears, whose liquidation levels outweighed the bulls, was likely.
Hence, despite the large losses over the past few days, a move upward was likely at press time.
Liquidation levels were measuring around $8 million at the local highs at the $0.0000348-$0.0000357 region. Hyblock data also showed that the $0.0000308-$0.000032 region was an area of interest.
Based on how the cumulative liquidation levels delta changes in the event SHIB prices bounce, we can assess whether the short-term bias remains bullish or has shifted bearishly.
Conclusion
The meme coin market surged higher toward the end of February and posted triple-digit gains. In any market, a 30% pullback from the local highs looks disastrous, but this is crypto.
The meme coin market has seen greater volatility and thrived.
Traders could find buying opportunities at the Fibonacci retracement levels plotted. With that said, the next few days could see Shiba Inu jump higher in search of liquidity.
The $0.00003 and $0.000035 levels were expected to act as resistance in this scenario.
