SHIB/USD Technical Analysis
About Shiba Inu (SHIB)
Shiba Inu (SHIB) is an ERC-20 token, based on Dogecoin, which was developed on Ethereum's blockchain network. Also known as the Doge killer, it is the second most popular memecoin – and this cryptocurrency was originally started as a joke. Although the origins of this decentralized token were in the form of a meme, it enjoys the backing of a strong online community, which has boosted its popularity in the market and made it hard to ignore, despite its ultra-low price.
As the website mentions, its low price allows interested investors to hold millions, billions or even trillions of SHIB in their wallets, with minimal capital. The price of Shiba Inu is extremely driven by sentiment, with the coin moving higher whenever trading in leading cryptocurrencies, and even Dogecoin, is bullish. While several experts dismiss the cryptocurrency as yet another joke, the launch of ShibaSwap – its very own proprietary decentralized exchange – in July 2021, gave the token a big boost in terms of credibility. ShibaSwap enables users to do more than just digital transfer of payments with their Shiba Inu holdings, and it promises to be the next evolution in DeFi platforms. It provides liquidity, enables staking and swapping of tokens on the DEX to generate rewards and passive income, and it will also allow access to upcoming NFTs and other tools.
Shiba Inu Breakdown
Named after the breed of dog that serves as the mascot for the original memecoin, Dogecoin, Shiba Inu was designed to provide its community with an opportunity to enjoy fair distribution and ownership, right from the very beginning. The SHIB is an ERC-20 token, which can be bought, sold and traded on the Ethereum blockchain. ERC-20 is the technical standard used for all smart contracts on the Ethereum network, and it is a useful way to implement tokens and the rules that the generated tokens must adhere to.
Similar to other leading digital currencies, including BTC, ETH and even LTC, ERC-20 tokens enjoy all the benefits of cryptocurrencies, in that the blockchain is the underlying technology on which they are created and run. However, unlike the bigger cryptocurrencies, tokens like the Shiba Inu don't have their own exclusive blockchain network, and are issued on Ethereum's network, therefore leveraging its technology instead.
Shiba Inu History
In August 2020, the Shiba Inu coin or Shiba Token was created by an anonymous person, or group of persons, who call themselves "Ryoshi", based on the idea of the original memecoin, Dogecoin. Although it is an ERC-20 token, based on Ethereum, it has been designed only to enable transfer of payment among users. At the moment, it does not have any smart contract feature.
Furthermore, the creator(s) of Shiba Inu intended that the cryptocurrency be completely decentralized, in that it is not backed by any assets or rights. The SHIB is fully owned by its community, similar to Bitcoin and Dogecoin, and it does not have any centralized authority or admin that has holdings locked up to maintain responsibility for its functioning. The developers of the SHIB token have locked 50% of its total supply on Uniswap and burned the remaining 50% to Ethereum co-founder Vitalik Buterin.
Memecoins shot to fame in early May 2021, just before the crypto market crash, when their values soared and engagement levels among their respective communities were at a peak. Shiba Inu became even more famous after it was reported that Buterin donated a large amount of his SHIB holdings towards relief efforts against COVID-19 in India on May 13.
Shiba Price Factors
Although very low, the price of Shiba Inu sees considerable fluctuation, especially based on the price action seen, not only in the market leader Bitcoin, but also in the larger and more popular memecoin, Dogecoin. Investor sentiment towards Bitcoin and cryptocurrencies in general do affect the SHIB rate, but in addition to this, the SHIB price is more strongly driven by changes in sentiment towards DOGE. Any positive news that drives up interest in DOGE and other memecoins often has a strong impact on the Shiba Inu rate.
One of the biggest influencers and lead promoters in this space, Tesla CEO Elon Musk, frequently plays a role in determining price action in the Shiba Inu chart. Musk, who calls himself the 'Dogefather', has often spoken out for or against memecoins in general, Dogecoin and even the Shiba Token.
The SHIB price also experiences considerable volatility upon the release of news about changes in its adoption. For instance, whenever a new crypto exchange lists SHIB as an offering to its users, interest in Shiba Inu increases, pushing its rate higher.
In addition, the Shiba Inu price is also affected by updates about regulation of the crypto sector in general. Negative news about regulatory clampdowns in this space tends to drive a bearish mood towards cryptocurrencies in general, among investors, which subsequently sends the SHIB rate down as well.
Trading Shiba Inu
If you are interested in trading Shiba Inu (SHIB), the first step will be to perform some online research to find available cryptocurrency exchanges and brokers that list this token among their offerings. You can then compare the features that each option offers and select the ideal exchange or broker to suit your needs.
Once you have opened an account with a crypto exchange or broker of your choice, you can convert your trading capital from fiat into cryptocurrency and use it to buy SHIB tokens. Based on the price action, and some fundamental and technical analysis, you can then choose to trade your SHIB tokens against other cryptocurrencies and fiat currencies.
However, before you start trading, please note that cryptocurrencies are extremely volatile and unpredictable, so it helps to gain an understanding of their underlying technology and developments, in order to minimize your exposure and make the most of the high levels of activity.
SHIB/USD - FAQs
Shiba Inu (SHIB) is a decentralized cryptocurrency that was created as a meme token on the Ethereum platform, to take on the original memecoin, Dogecoin. The cryptocurrency can be bought, sold and traded on cryptocurrency exchanges and it can also be used as a way to transfer payments digitally between users.
To start trading Shiba Inu, you must first open an account with a cryptocurrency exchange or broker that lists the SHIB token among their offerings.The next step is to convert your fiat currency into the trading capital needed to purchase SHIB on the platform of your choice. We recommend that you diligently take the time to read up on the crypto market and the latest developments that could affect the Shiba Inu price, before you start trading it.
Your Shiba Inu holdings can be stored in any digital wallet that supports ERC-20 tokens. Some of the wallets you can consider using include MetaMask, Atomic, KuCoin and Trust Wallet.
In addition to trading Shiba Inu tokens on supported cryptocurrency exchanges, the cryptocurrency can also be used as a payment method on the Shopping.io interface, to shop at leading retailers, including Amazon, eBay and Walmart. In addition, there are some businesses that have recently started accepting SHIB as a payment method, such as the online travel website AlternativeAirlines.com.
Most countries allow their citizens to buy cryptocurrencies, including Shiba Inu. However, some countries consider it illegal to purchase and use digital currencies. We recommend that you look up the latest regulations in your country before deciding to buy SHIB.
The UK has not yet imposed any specific, direct regulations on cryptocurrencies; however, the FCA has recently taken over as the major regulator of this sector and insists that businesses in the market register with them before starting their operations.
The memecoin, Shiba Inu, is considered one of the riskier cryptocurrencies to trade, as several experts still consider it to be a joke. It is more volatile, as many players in the market do not consider it to be as useful as other options. However, with its ultra-low prices, it is a preferred way for new investors to dip their toes into the world of cryptocurrencies without worrying about losing too much of their capital.