The Shiba Inu (SHIB) price hike so far in October has made the SHIB token the 20th largest digital asset by market capitalization.
Shiba Inu’s circulating market valuation jumped to $ 11.08 billion earlier this week and is now over $ 10 billion, making it in the top 20 by market cap for the first time. This makes the Dogecoin-inspired cryptocurrency more valuable than popular blockchain projects like Stellar (XLM), Polygon (MATIC) and Tron (TRX).
The growth in Shiba Inu’s rating came from a tweet posted by Elon Musk. On October 4th, the Tesla CEO posted a picture of his dog – a Shiba Inu breed – with the caption “Floki Frunkpuppy”. SHIB was up more than 40% an hour after the tweet.
Floki Frunkwelpe pic.twitter.com/xAr8T0Jfdf
– Elon Musk (@elonmusk) October 4, 2021
Cryptocurrency speculators tend to read too much on Musk’s tweets. For example, the billionaire entrepreneur was instrumental in driving up the price of Dogecoin (DOGE) via Twitter in early 2021.
SHIB price is up nearly 400% after opening the fourth quarter of 2021 at $ 0.00000725 per week. The token retested the five-month high of $ 0.00003528 on October 7th.
However, SHIB experienced a 40% excess price correction on the same day as some traders decided to relax their spot positions for a temporary profit. As a result, Shiba Inu’s market cap fell as low as $ 8.06 billion on Friday.
The sell-off on the Shiba Inu markets (against the dollar and Bitcoin) fueled the bearish buying mood. A subsequent rally caused the SHIB price to rise by more than 45%. At its peak on Saturday, the token changed hands for $ 0.00003020, with a market cap of around $ 10.73 billion.
What’s next for SHIB?
Shiba Inu price fell more than 5% on October 9, hit an intraday low of $ 0.00002575. In doing so, the cryptocurrency hints at the formation of a potential descending triangle pattern, indicating further losses ahead.
Related: “More” ahead? Dogecoin chart fractal endangers Shiba Inus 390% QTD rally
Specifically, descending triangles are bearish patterns that typically form when prices are trending downward while oscillating between an area defined by two converging trend lines: one bearish and the other horizontal, like the lines shown in the SHIB in the chart below has formed.
The formation of lower highs above the stationary support line shows that retailer buying sentiment is weakening. Hence, price eventually tends to break below the horizontal trendline. The target moves to a level the length of which corresponds to the maximum triangular height.
In other words, SHIB price could drop below $ 0.00001000 in the coming sessions if the above support doesn’t hold.