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Shiba token has been on a ride this year. A few days ago, it hit an all-time high of $0.000087. This was a great milestone for a coin that is just a year old. This price rally made it join the top 10 biggest cryptocurrencies list. Outpacing its largest meme coin rival Dogecoin.
For a long time, DOGE and SHIB have been seen as competitors. This is because both coins have had very low pricing and their naming comes from some famous dog names. This group of meme coins is known to attract a lot of market attention and explode when there is enough buying demand.
Since hitting the all-time high, SHIB has been in a market retracement for the last few days and seems to have found a comfortable support area around the $0.000063 zone.
This consolidation zone is becoming a key area for the investors as it could offer a great launching pad for another price rally. Some analysts believe that SHIB could see a 600% price rally soon. This again is based on the Peak Dogecoin performance.
Price retracement in financial markets is a normal occurrence as traders take a break from the trend. This is a period whereby some traders take profits while the rest take a wait-and-see approach. Waiting for a price continuation signal before they can get into the market.
Buying Low Opportunity
The current low SHIB price offers a good opportunity for traders to get in. This is a strategy in the cryptocurrencies where traders buy the dip. This is a very rewarding strategy if the market rises thereafter.
The low prices allow a trader to acquire more tokens in comparison to buying at the high. As more people buy at these low prices, the bullish momentum increases hence pushing the prices higher.
As a cryptocurrency, Shiba has various benefits it enjoys such as decentralization. This enables the currency to have utilities such as using it as a peer-to-peer currency.
Recently, the Shiba creators have introduced the first Shiba network NFTS. This is a major shift and value add to the coin.
There is also the ShibaSwap platform that enables some activities such as coin swapping. These platforms are increasing their utility value. Combined, they will help drive SHIB prices higher.
Shiba continues to burn tokens massively. This is expected to boost the tokens’ price in the long term. Coin destruction helps reduce coins supply helping boost the price. A scenario that is likely to play out soon.
Various indicators are giving signals of a coming Shiba price pump soon hence the need to stock up now.
I believe the recent fall in price is temporary and is in tandem with the cryptocurrencies price trend. This is a very volatile market. Hence, it’s normal to have huge price falls and jumps.
It is key to note these markets remain extremely risky hence risk management should be prime.