Shiba Inu is now one of the top 20 cryptocurrencies with a SHIB price up 300% in 9 days

The rise in the price of the Shiba Inu (SHIB) so far in October has pushed the SHIB token to become the 20th largest digital asset by mar...


The rise in the price of the Shiba Inu (SHIB) so far in October has pushed the SHIB token to become the 20th largest digital asset by market capitalization.

Shiba Inu’s outstanding market valuation jumped to $ 11.08 billion earlier this week and is currently above $ 10 billion, placing it in the top 20 for the first time in terms of market capitalization. As a result, the Dogecoin-inspired cryptocurrency meme has become more valuable than popular blockchain projects like Stellar (XLM), Polygon (MATIC) and Tron (TRX).

SHIB market capitalization relative to price. Source: Messari

The growth in valuation of Shiba Inu followed a tweet posted by Elon Musk. On October 4, the CEO of Tesla posted a photo of his companion dog, a Shiba Inu breed, with the caption “Floki Frunkpuppy”. SHIB jumped over 40% an hour after the tweet.

Crypto speculators tend to read Musk’s tweets too much. For example, the billionaire entrepreneur was instrumental pushing Dogecoin (DOGE) higher price earlier in 2021 via Twitter.

The price of SHIB jumped nearly 400% per week after opening the fourth quarter of 2021 to $ 0.00000725. In doing so, the token retested its five-month high of $ 0.00003528 on October 7.

However, SHIB suffered a price correction of more than 40% on the same date that some traders decided to unwind their spot positions for intermediate profits. As a result, Shiba Inu’s market capitalization fell at the same time, falling to $ 8.06 billion on Friday.

SHIB / USDT Daily Price Table. Source: TradingView.com

The massive sell-off in the Shiba Inu markets (against the dollar and Bitcoin) prompted bearish buying sentiment. A rebound ensued, which pushed up the price of SHIB by more than 45%. At its highest on Saturday, the token was changing hands for $ 0.00003020, with a market cap of around $ 10.73 billion.

What’s next for SHIB?

The price of the Shiba Inu fell more than 5% on October 9 to a new intraday low of $ 0.00002575. In doing so, the cryptocurrency hinted at the formation of a potential descending triangle pattern, suggesting additional losses before.

Related: ‘Much in advance? Dogecoin Chart Fractal Endangers Shiba Inu’s 390% QTD Rally

In detail, descending triangles are usually bearish patterns that form when price trends fall while fluctuating between an area defined by two converging trend lines: one descending and the other horizontal, like the ones SHIB has. formed in the graph below.

Four hour SHIB / USDT price chart with descending triangle pattern. Source: TradingView.com

The formation of higher highs lower at the top of a stopped support line indicates weakening buying sentiment among traders. As a result, the price ultimately tends to go below the horizontal trend line. In doing so, its target moves to a level with a length equal to the maximum height of the Triangle.

In other words, the SHIB price may drop below $ 0.00001000 in the next few sessions if the aforementioned support level does not hold.

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