- Shiba Inu price decline has not been matched by increasing volume, suggesting it is not token specific.
- ShibaSwap decentralized cryptocurrency exchange (DEX) in testing mode, to be released to the public soon.
- Social volume stabilizes during another period of price weakness.
Since June, Shiba Inu price has been locked in a descending channel but holding the outstanding May 19 support during the new selling wave in the cryptocurrency complex. The resulting bounce has stalled at the apex line of a previous symmetrical triangle, a level that served as support in late May.
Shiba Inu price falls, but no stampede for the exits
From May 19 to May 24, Shiba Inu price illuminated a symmetrical triangle pattern with a measured move target of $0.00001450, representing a 50% gain at the time. The breakout did materialize but quickly faded as underwater investors used the first sign of strength to reduce position sizes.
During the May 28-30 period, Shiba Inu price balanced along the apex level of the symmetrical triangle, registering an inside day on May 30 and leading to another quick burst that was quickly faded.
Since June 3, Shiba Inu price has trended lower in a descending channel accumulating a 40% decline for SHIB. However, it is interesting to note that the volume underpinning the descending channel has been declining, revealing there is no stampede for the exits, despite the weakness. In fact, over the last few days, the volume has not eclipsed the 50 four-hour average.
The limited volume validates the view that the recent drop is more a function of the weakness and volatility in the cryptocurrency complex rather than being token-specific. SHIB could still become the flavor of the summer with some help from the market.
In the short term, Shiba Inu price could be locked between the symmetrical triangle apex at $0.00000763 and the May 19 low at $0.00000607 until the broader market reconciles the uncertainty that has been omnipresent since the May 19 and 23 crashes. Once that occurs, investors should engage the rookie cryptocurrency with commitment.
SHIB/USD 4-hour chart
Shiba Inu price to get a boost with the new ShibaSwap platform
ShibaSwap, a new decentralized cryptocurrency exchange (DEX) of Shiba Inu, will be launched shortly. It is a coin exchange like UniSwap or PancakeSwap. According to social media, the platform has been working for weeks, but it still is being audited to ensure complete security and transparency.
The new DEX will allow buyers to trade between SHIB and other tokens, thereby raising the newcomer’s profile among crypto investors.
Many faithful SHIB followers are getting anxious about the formal release. Still, during a period of dislocation in the crypto market, it is better to continue testing rather than having the release drowned by bigger news. Focused attention is fundamental to transforming a digital asset into a mainstream player.
Shiba Inu price weakness has not translated into less social media traffic
The Santiment Social Volume metric shows the mentions of SHIB on 1000+ crypto social media channels, including Telegram groups, crypto subreddits, discord groups and private traders chats. The metric informs that SHIB social volume decline was dramatic during the May crash. However, the social volume has recently broken with a secondary downtrend and is plateauing even as Shiba Inu price declined 40%.
It does not confirm a price low for Shiba Inu price. Still, it does affirm there is a foundation to communicate new developments with the cryptocurrency, such as ShibaSwap and to herald bullish price patterns and action.
SHIB Social Volume - Santiment
The experience of Dogecoin in 2021 has shown how vital social media coverage is for a fledgling cryptocurrency. It is no different for SHIB.
Significant hurdles to overcome, but SHIB may be ready
It is challenging to analyze the outlook for a new cryptocurrency in terms of the charts and from a fundamental perspective because the data is limited and indicators are highly skewed.
SHIB received a lot of attention for the dramatic gain in May, motivating keen crypto followers to chase the newest flavor, but that came to a sudden stop with the subsequent crash of over 80%.
With the new decentralized cryptocurrency exchange, SHIB can strike new coverage, promoting a valid use. The social media base can articulate Shiba Inu’s evolution and the new DEX, again exposing SHIB to a broader audience.
Lastly, the volume profile during the recent decline reflects an oversold condition. The majority of the weak holders have liquidated, and the renewal of optimism in the broader crypto market should be matched with Shiba Inu price outperformance.
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