With a strong breakout in October, Shiba Inu (SHIB) is the 20th largest cryptocurrency by market capitalization.
SHIB’s circulating capitalization rose to $ 11.08 billion earlier this week and is now at $ 10.5 billion.
SHIB market capitalization vs. price | Source: Messari
SHIB rallied after a tweet from Elon Musk’s dog – a Shiba Inu breed – titled “Floki Frunkpuppy” on October 4th.
Cryptocurrency speculators seem to be very concerned about Musk’s tweets. He’s the person who helped drive the Dogecoin (DOGE) price sky high on Twitter in early 2021.
SHIB price is up nearly 400% after starting the fourth quarter at $ 0.00000725 per week. The five-month high of $ 0.00003528 was retested on October 7th.
However, SHIB was revised up to 40% on the same day as some traders decided to ditch their spot market positions for temporary gains, pushing its market cap to its lowest level of $ 8.06 billion on Friday October 8th.
Daily frame SHIB price chart | Source: TradingView
The sell-off in the SHIB markets (against the dollar and bitcoin) encouraged dip buying, with a 45% rally that followed shortly thereafter. At its peak on Saturday, SHIB was listed at $ 0.0000302 with a market cap of around $ 10.73 billion.
What’s next for SHIB?
SHIB price fell more than 5% on October 9, hitting an intraday low of $ 0.00002575. At this point, a potentially descending triangle pattern forms, signaling a possible imminent correction.
In particular, descending triangles are typically bearish patterns that form when price tends to move down while oscillating between an area defined by two converging trend lines (one descending and the other), as in the following Graphic shown.
4-hour SHIB price chart with a descending triangle | Source: TradingView
The formation of lower highs above the declining support line shows that traders’ buying sentiment is weakening. As a result, the price tends to break below the horizontal trend line. Then the price moves around the maximum height of the triangle.
In other words, SHIB price could fall to $ 0.00001 in the coming sessions if the above support doesn’t hold.
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According to Cointelegraph