Shiba Inu, like other cryptocurrencies, did not have a good performance in April as worries about the hawkish Federal Reserve continued. As a result, the Shiba Inu price dropped to a low of $0.000018, which was the lowest level since January 2022. On the other hand, this price was about 30% above the highest point in April, bringing its total market cap to about $11.4 billion.
The biggest story related to meme coins in April was the decision by Elon Musk to acquire Twitter. This decision was seen as being positive, considering that Musk is one of the biggest promoters of Dogecoin. Therefore, investors believed that his acquisition would yield more returns for other digital coins like Bitcoin and meme coins like Shiba Inu and Floki Inu.
However, it seems like the fear of a hawkish Fed was more than Musk’s Twitter buyout as the price of Dogecoin and other coins retreated. At the same time, internal data showed that activity in the ShibaSwap ecosystem was slowing down. For example, the ecosystem’s ecosystem’s total value locked (TVL) dropped from over $130 million to about $70 million. This happened even after Shiba Inu made revelations about its metaverse plans.
Shiba Inu was also listed in Robinhood. In my report after the Robinhood listing, I warned that the initial pump would not last.
The four-hour chart shows that the SHIB price has been in a tight range in the past few months. As a result, it crashed to a low of $0.000018, which was the lowest level since January. It also declined below the 25-day moving average while the Stochastic Oscillator has moved slightly above the oversold level. However, the price is still slightly below the descending trendline shown in purple.
Therefore, since it has formed a descending triangle, it is possible to retest the support at $0.000012 in May. A move above the resistance at $0.000025 will invalidate the bearish view.
This post was last modified on May 03, 2022, 09:58 BST 09:58