Breaking through the $28,300 resistance level was important for Bitcoin, but there is not a stable demand above this level. As a result, the price cannot test higher resistance levels. Although the cumulative volume of cryptocurrencies has increased by about 6% in the weekly period, it has fallen below $40 billion again. In short, a new wave of selling may be approaching for altcoins.
Shiba Coin (SHIB) Review
For months, the movements of altcoins have manifested differently from the 2 steps forward, 2 steps back movements of the BTC price. Altcoins move 1 step forward and 3 steps back. Of course, as a result of this negative divergence, new ATL levels have been determined. Many popular cryptocurrencies, including AVAX, have lost their historical low levels in a worrying manner.
The reason why most altcoins have fallen below their November 2022 lows has been explained above. The same situation applies to Shiba Coin as well. Moreover, the failed Shibarium launch amplifies the negativity surrounding SHIB.
The number of new addresses on the network has dropped to as low as 20. This decline is the worst in the past month, and active addresses (below) have almost reached zero compared to August. We can clearly see how active addresses have eroded as of September 10th from the chart.
If Shibarium cannot revive the network with something new, such as Avalanche‘s SocialFi application Stars Arena or any other way, Shibarium will not contribute to the price. Moreover, the narrative that the Shiba Coin team is only chasing hype and forgetting about their previous products, as well as abandoning this L2 solution to its fate, strengthens.
Shiba Coin Review
With the negativity of BTC and the failure of Shibarium, the price of Shiba Coin finds buyers at $0.0000067 at the time of writing. As we can see on the daily chart in the long term, the price has returned to where it started on June 13th. The decline of Shiba Coin could continue to $0.0000064.
If the 2023 bottom is violated, Shiba Coin investors will start to remember the past. We will try to find deeper support levels by asking how much the price was before the listing on Binance and at what price it was looking for support. Because we will have seen the ATL on Binance.
For those who are curious, before being listed on Binance, Shiba Coin quickly got rid of its zeros. At that time (before the Binance listing), it maintained the support at $0.000002 on the Poloniex exchange. If our eyes are looking for support for Shiba Coin while BTC drops to $20,000, we will probably look at this level.
