Shiba Inu (SHIB) hovers above its most crucial support at $0.000007 while traders shift their attention to Calcium (CAL), a dummy test token launched by the network’s developers but not for investment purposes.
Down 1.3% over the last seven days, the second most popular meme coin’s search for the bear market seems far from over.
Does Shiba Inu Price Recovery Depend On This Level?
The run-up to the launch of Shibarium, a Layer 2 scaling protocol, sustained a Shiba Inu price rally from the low in June at $0.000006 to highs above the psychological hurdle at $0.00001 but lost steam on touching highs of $0.000011.
Instead of the rally continuing post the launch in mid-August, declines attributed to the scaling challenges faced by the new network engulfed the token. The sell-off that followed had no regard for several support areas, leaving Shiba Inu price to plummet to $0.000007.
If support at $0.000007 continues to hold firmly, confidence in the possibility of a rebound above $0.00001 will start to improve among investors. Besides, with SHIB trading at $0.00000728 and holding above the lower ascending trendline (in the chart), the risk of further declines in search of a bear market bottom may have reduced significantly.
A buy signal from the Moving Average Convergence Divergence (MACD) indicator suggests that a rebound is due. Traders often look out for the blue MACD line crossing above the red signal line to place their buy orders in conjunction with other trend indicators.
A positive outlook from the Relative Strength Index (RSI) reveals that bulls have the upper hand. However, buy signals are not enough to reverse the trend unless traders rally behind SHIB to build the momentum to make the climb to $0.00001 materialize.
Traders seeking exposure to Shiba Inu longs should keep in mind the plausible speed brakes likely to dampen the uptrend. For instance, the 21-day Exponential Moving Average (EMA) (red) which might complicate SHIB’s outlook at $0.00000751, the 100-day EMA (blue) at $0.00000817 and the 200-day EMA (purple) at $0.00000886.
On the contrary, losing the immediate support provided by the lower ascending trendline would exert more pressure on the key support at $0.000007, thus increasing the risk of the down leg stretching to seek liquidity from a much lower bear market bottom price point.
Traders Jump On Dummy Token
The Shiba Inu community is a buzz with discussions around a fake token launched by the protocol’s developers for test purposes after traders jumped on it to resurrect it to make it a real token.
Developers issued Calcium (CAL) on Friday, a dummy token intending to renounce one of the ecosystem’s tokens, bone (BONE) token contract. A bot scooped 50% of the supply as planned after CAL went live on ShibaSwap, a decentralized exchange.
Some traders saw this as an opportunity and started buying Calcium with the hope of making a quick buck, but luck was not on their side and they lost money. The token was not meant for investment purposes.
The Spinoff
Traders claiming to have lost money moved quickly by creating a new trading pair on another DEX, Uniswap, leaving the CAL tokens on ShibaSwap almost worthless after plunging 99% and attracting only $4,800 in trading volume.
$CAL The newest coin launched by $SHIB team
a thread🧵 pic.twitter.com/j0s27iIEkn
— BlockChainKing (@1BlockChainKing) September 22, 2023
The situation on Uniswap was, however, different with trading volumes rallying to $4 million supported by $164,000 in liquidity.
A narrative has begun to form around cal, essentially abandoned by $SHIB, it is truly out of their control yet created by them. $CAL is the bastard child of the shib lineage pic.twitter.com/HYChQ9RZVP
— bagofbread (⚰️,⚰️) (@Bagofbread2) September 22, 2023
Shiba Inu developers created a token, and renounced their rights to the token, losing all control to the community.
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