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SHIB Price May Have Found Its Bottom, Here's What's Next

Wed, 11/16/2022 - 09:47
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Gamza Khanzadaev
As SHIB price appears to have bottomed out, we look at what might pull it out
SHIB Price May Have Found Its Bottom, Here's What's Next
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In the last 10 days, overshadowed by the collapse of major crypto exchange FTX, SHIB has returned to levels where it last dipped only in early summer of this year.

Source: TradingView

At that time, there was more liquidity on the market, and the scope of the correction was higher, so this time the SHIB price suffered slightly less. The fact that, after another round of crypto market capitulation, Shiba Inu token's price did not go below the known zone around $0.000009 may signal that the bottom for SHIB has been reached once again.

What will be the trigger for the rise in SHIB quotations and pull the token back to at least August levels? There are several such factors, not least because of the Shiba Inu project itself.

Hundreds of Billions of SHIB Transferred as News About Vital Milestones Gets Revealed

SHIB price triggers

The first trigger is definitely Shibarium, the ecosystem's own Layer 2 protocol. What Twitter means to DOGE, Shibarium is to SHIB. A proprietary blockchain solution should greatly increase the utility of the token, which will translate into increased demand, trading volumes and SHIB burning rate.

The second factor — just as important, if not more — is the overall crypto market environment. With its collapse, FTX has damaged the sector significantly, and the ripple effects will be felt for a long time to come. Investor confidence may take a long time to return, and even longer for tokens like SHIB which, although high in market capitalization, are not at the forefront.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.