What will happen to Shiba Inu price after founder Ryoshi steps down

SHIB price at a crucial point to potentially break the downtrend.
Shiba Inu founder Ryoshi retreats from the community and steps down after erasing all social media accounts.
Ryoshi’s move may puzzle markets and could delay the bullish breakout.

Filip Lagaart FXStreet

Shiba Inu (SHIB) traders must be on edge after the broad media picked up the last tweet and mic drop from Shiba Inu founder Ryoshi just moments before he erased all his social media accounts. With his stepping-down, traders will be questioning whether it is just the founder leaving the cryptocurrency to stand on its own two legs or there are more details to come given how the Luna debacle is still not far away in the back of their minds. SHIB price has retreated onto the back foot as a result and this could dampen hopes for a bullish breakout anytime soon as trust will need to be rebuilt over time.

SHIB price breakout delayed as uncertainty sneaks in

Shiba Inu price sees its price action relatively contained after the last tweet from its fonder Ryoshi: “ I am just some guy of no consequence tapping at a keyboard, and I am replaceable. I am Ryoshi’. Although the pseudonymous founder already warned several times that he had no intentions of staying on indefinitely, the news has put traders on edge, questioning if this is the right time to buy or if something else is going on within the meme coin itself that could trigger future losses. Investors only just now started to shrug off the Terra Luna debacle. The timing is undoubtedly peculiar as the global trust in cryptocurrencies and alt currencies has not yet peaked back to levels from 2021.

SHIB price technically was set to break above the red descending trend line and reclaim the historic pivotal level at $0.00001209. Now, however, the breakout is likely to be delayed and not materialise until a later stage as price action will now first look back for support around $0.00000965 or a higher level, depending on where the new monthly support levels will be appearing as of Wednesday, as a new trading month is just around the corner when they will be recalculated. In a couple of days, expect the bullish breakout to follow with price action reclaiming $0.00001209 and possibly $0.00001708 once traders are fully trusting and the news about the founder stepping down, has faded to the background.

SHIB/USD daily chart

As mentioned in the previous paragraphs, the question remains if something else is cooking underneath the bonnet. Is there a similar risk at hand as with Tera Luna? Admittedly, SHIB price is not a stable coin and thus behaves entirely differently but traders may still suspect something is wrong. In a case where investors’ trust is dented, price action could break below $0.00000965 and sell off further in a sort of vote-of-no-confidence by traders who will bring price action down to $0.00000655.