The SHIB token had rallied a monstrous 2,000% over the past week, with most of the crazy buying coming after the coin got listed on the crypto exchange Binance
DOGE-inspired SHIBA INU (SHIB) saw an uptake in the market to send its value vertical by nearly 2,000 percent in the past week. The token’s value has however declined slightly over the past 24 hours, with prices currently about 50 percent up on the day and 1,700 percent over the past week.
The ERC-20 token is native to the ShibaSwap DEX protocol and is used to incentivise users. According to Binance, SHIB was a fair launch, meaning no team tokens are held. All 100 percent of the 1 quadrillion (1,000,000,000,000,000) tokens are already in circulation.
SHIB price outlook
SHIB spiked largely due to the huge interest in the token (the reason Binance decided to list it). But after fueling the price action to highs of $0.00040, traders are likely to dump for profit.
Crypto analyst Michael Van de Poppe has cautioned that projects such as SHIBA INU can only “hurt” the market.
My point of view on $SHIB?
Everyone should do what they want to do, when they want to do that.
And 90% of the people will lose money on it.
— Michaël van de Poppe (@CryptoMichNL) May 10, 2021
SHIB/USD price on a 15-minute chart on FTX. Source: TradingView
SHIB price is looking to rebound towards $0.000033 after facing massive selling pressure, as seen on the 15-minute chart of the SHIB/USD pair on crypto exchange FTX.
The pair broke below a horizontal support line at $0.000031, with bears revisiting lows of $0.000027 before an upside above $0.000032. If the SHIB price rebounds above $0.000033, there is potential for it to reach $0.000037 and then $0.000040.
The positive outlook is supported by the hidden divergence suggested by the MACD and the steadying RSI that is looking to rise above the equilibrium point.
On the contrary, a spike below the horizontal support line at $0.000031 could open up room for more decline towards lows of $0.000023.
Meanwhile, Dogecoin price is looking to rise again after rallying above the $0.50 resistance line. The original meme-coin is now trading at $0.53, with an uptick in sentiment likely to see it retest recent peaks.