Shiba Inu (SHIB) remains just above its critical support level at $0.000007, as traders divert their focus towards Calcium (CAL), a test token introduced by the network’s developers for non-investment purposes. Despite a 1.3% decline in the past week, SHIB, the second most well-known meme coin, continues its quest in the challenging bear market landscape.
Is Shiba Inu’s Price Rebound Tied to This Level?
The lead-up to the Shibarium launch, a Layer 2 scaling protocol, fueled a Shiba Inu price surge, starting from its low point in June at $0.000006 and reaching heights above the significant psychological barrier of $0.00001. However, the momentum waned when it touched highs of $0.000011.
Rather than seeing continued gains after the mid-August launch, the token experienced declines attributed to the scaling challenges encountered by the new network. The subsequent sell-off paid little attention to several support levels, causing Shiba Inu’s price to plummet to $0.000007.
If the support at $0.000007 remains robust, investor confidence in the potential for a rebound above $0.00001 is likely to increase. Moreover, with SHIB trading at $0.00000728 and holding above the lower ascending trendline on the chart, the risk of further declines in the pursuit of a bear market bottom may have considerably diminished.
A buy signal has emerged from the Moving Average Convergence Divergence (MACD) indicator, indicating a potential rebound. Traders often watch for the blue MACD line to cross above the red signal line as a signal to place buy orders, especially when combined with other trend indicators.
A positive assessment from the Relative Strength Index (RSI) suggests that bulls are in control. However, buy signals alone may not be sufficient to reverse the trend unless traders actively support SHIB and generate the momentum needed to reach the $0.00001 level.
Traders considering long positions in Shiba Inu should be aware of potential obstacles that could slow down the uptrend. For example, the 21-day Exponential Moving Average (EMA) in red may pose challenges at $0.00000751, followed by the 100-day EMA in blue at $0.00000817 and the 200-day EMA in purple at $0.00000886.
Conversely, losing the immediate support provided by the lower ascending trendline would increase pressure on the critical support level at $0.000007, raising the risk of a more significant downward movement in pursuit of liquidity at a lower bear market bottom price point.
Traders Flock to Dummy Token
The Shiba Inu community is abuzz with discussions regarding a mock token introduced by the protocol’s developers for testing purposes. This buzz arose after traders attempted to transform it into an actual token.
On Friday, developers launched Calcium (CAL), a dummy token intended for the purpose of renouncing the contract of one of the ecosystem’s tokens, namely the bone (BONE) token. As planned, a bot acquired 50% of the supply when CAL became available on ShibaSwap, a decentralized exchange.
Some traders viewed this as an opportunity and started purchasing Calcium with hopes of making a quick profit, but fortune did not favor them, resulting in losses. It should be emphasized that the token was never intended for investment purposes.
Traders who asserted losses acted swiftly by establishing a fresh trading pair on a different decentralized exchange (DEX), Uniswap. This move rendered CAL tokens on ShibaSwap nearly devoid of value, as they plummeted by 99%, garnering a mere $4,800 in trading volume.
The scenario on Uniswap presented a contrasting picture, with trading volumes surging to $4 million, backed by a substantial liquidity pool of $164,000.
Shiba Inu developers introduced a token and relinquished their ownership rights, ceding complete control to the community.