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Shiba Inu's (SHIB) 'Death Line' Might Cause True Horror on Market

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Tue, 16/05/2023 - 17:00
Shiba Inu's (SHIB) 'Death Line' Might Cause True Horror on Market
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Shiba Inu (SHIB) seems to be grappling with a significant resistance level, ominously dubbed the "Death Line." This resistance level is the strongest encountered by SHIB in recent months and could potentially push the token to new, unprecedented lows.

Despite reaching a solid support level at around $0.000008, Shiba Inu token's price is confronting considerable pressure from the market. This pressure might lead to a drastic price correction if the token fails to maintain its position above the support line. With the existence of the "Death Line," the token's price has the potential to plummet toward $0.000007, which would represent a critical setback for the token and its holders.

Shiba Inu chart
Source: TradingView

The bearish trendline, traced over the past few months, appears to be holding strong, and if the trend persists, it may lead to a further devaluation of the token. This possible scenario is causing a sense of unease among the token's investors, as the breaching of this so-called "Death Line" might trigger a significant sell-off.

It is essential to note, however, that while technical analysis suggests a potential downturn, the crypto market's inherent volatility means that nothing is set in stone. Factors such as market sentiment, global economic trends and updates or changes within the Shiba Inu ecosystem could all influence the token's trajectory.

Dogecoin's unexpected growth

The cryptocurrency landscape witnessed an unexpected shake-up recently as Dogecoin (DOGE), the popular meme-based cryptocurrency, gained substantial traction following the introduction of the DRC-20 standard.

The newly implemented token standard sparked a meteoric rise in the number of daily transactions on the Dogecoin blockchain, which peaked at an all-time high of 650,000. This surge has allowed Dogecoin to momentarily outpace both Bitcoin and Litecoin in terms of transaction volume, a development that has captured the attention of the crypto world.

The DRC-20 standard, analogous to Ethereum's ERC-20, enables the issuance and management of tokens on the Dogecoin blockchain. This has opened up new possibilities for decentralized applications (dApps) and initial coin offerings (ICOs) on the Dogecoin network, fostering increased activity and interest.

The introduction of DRC-20 has proven to be a significant catalyst for Dogecoin, and it appears that the speculative heat that originally surrounded BRC-20 tokens is gradually spreading to proof-of-work (PoW) blockchains such as Litecoin and Dogecoin. This has led to a tremendous increase in the network activity of these chains, with Dogecoin leading the pack.

Cardano on solid support

Cardano (ADA), currently finds itself perched precariously on a sizeable support level. The support, built over time, has been a reliable cushion for ADA in previous market downturns. Investors are now keenly watching the digital asset for signs of a bounce that could potentially see ADA reach fresh local highs.

However, the crypto markets at present are somewhat lukewarm, lacking the kind of momentum that could fuel a significant rally. Despite strong fundamentals and the promise of the Cardano network, ADA seems to be stuck in a lull, unable to gather the traction necessary for a substantial price surge.

Related

The absence of notable market drivers, such as ordinals, further dampens the prospects of a disruptive rally for ADA. Ordinals, a term used in the crypto world to describe significant events or developments that can influence a token’s price, have been notably absent in Cardano's ecosystem recently. Without such catalysts, it becomes more challenging to spark investor interest and fuel a significant price move.

  • Even with these factors, Cardano's current position on the major support level should not be dismissed. Historically, price levels like these have often presented prime buying opportunities for savvy investors. However, without a substantial increase in market traction or the arrival of influential ordinals, these highs may be moderate rather than meteoric.
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