After Recent Rally, Is Shiba Inu Coin About To Crash While XRP20 Gains Traction?

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Shiba Inu (SHIB) is trading with a bullish bias. This is after a 50% climb from the $0.00000652 support floor around mid-June to the current price of $0.00000971. However, the rally seems likely to be coming to an end, and a crash may be imminent as SHIB price action is about to confirm J Welles Wilder’s interpretation of an overbought asset.

Shiba Inu Price Breakout Triggers

Shiba Inu price breakout beginning June 15 came as the SHIB ecosystem doubled down on network growth. It started with the Shibacals product to link non-fungible tokens (NFTs) to real-world items. The service comes with readiness for Shibarium, a planned layer two blockchain focused on metaverse and NFT applications.

Shibarium Zoomed Out, .@shibacals Authenticated Collectibles, Shiba on Champion Garments(!), and the upcoming Worldpaper. Time for an update #SHIBARMY… https://t.co/QpFtVxCl3x

— Shytoshi Kusama™ (@ShytoshiKusama) June 21, 2023

Resuming crypto buying power reinforced the bullishness around Shibacals. This was after the Securities & Exchange Commission (SEC) crackdown on cryptocurrencies provoked a market-wide bloodbath. It lasted for the first three weeks of June after the SEC attack on Binance and Coinbase. Towards the fourth quarter of June, buying power resurfaced, with the likes of Shiba Inu price benefitting. The buying power translated into capital inflow into SHIB and other altcoins.

Binance Approves Shiba Inu As Collateralized Crypto Asset

In the latest of the SHIB price bullish fundamentals, Binance, the largest crypto exchange by trading volume, takes credit. In an August 4 announcement, the exchange cleared the SHIB token to operate as a “collateralized asset,” featuring among 22 other crypto tokens that will be “loanable on its Flexible and VIP Loan services.”

#SHIB Enter collateral assets By #Binance #SummerOfShibarium https://t.co/MNw4nVd8c2 pic.twitter.com/ykD8wQ3QtT

— chimi 🍖SHIB.IO 🇮🇩 (@chimiwaw) August 4, 2023

The news triggered a massive surge in short and long-liquidations for Shiba Inu, totaling a staggering 10 billion in open interest. This meant many contracts were open, as market participants watched the market closely.

SHIB open interest — Shiba Inu Open Interest

In the same way, capital inflow into the Shiba Inu bucket kept growing, which explains the ambitious buying momentum.

SHIB Price Analysis As Technical Indicators Suggest Impending Crash

SHIB’s price, though still bullish, shows an impending crash. The token is down around 7% in the last 24 hours after establishing an intra-day high of $0.00001029.

After a rejection from the psychological $0.00001100, Shiba Inu’s price is on course south. An increase in selling pressure could see SHIB flip the support offered by the 200-day Exponential Moving Average (EMA) at $0.00000928 back to a resistance level. Such a move could increase overhead pressure, with the ensuing headwinds likely suppressing SHIB back under the foothold of the 100-day EMA at $0.00000845.

In the dire case, Shiba Inu’s price could slide below the 50-day EMA support of $0.00000813. Nevertheless, invalidation of the current bullish outlook would only happen upon a decisive move below the ascending trendline support.

SHIB price — TradingView: SHIB/USDT 1-day chart

The Relative Strength Index (RSI) supports the odds of a crash. Based on this momentum indicator, Shiba Inu’s price was just about to confirm Wilder’s interpretation of an overbought asset.

Based on his analysis, an asset is overbought when the RSI crosses below the 70 level as it extends south. On the daily chart above for the SHIB/USDT trading pair, the RSI is at 71 and en route south. As it edges closer to flipping the 70 levels, the meme coin will be overbought once the RSI crosses below. This means a pullback or correction is likely.

Converse Case

Conversely, SHIB bulls may only be looking for a breather. If this is the case, Shiba Inu’s price could make a turnaround from the ongoing descent. The likely pivot for such a move would be the support confluence between the horizontal line and the 200-day EMA at $0.00000929. The ensuing buying pressure could see the altcoin correct north, possibly breaching the local high at the psychological $0.00001100.

While Shiba Inu price deliberates between crossroads, consider XRP20, a meme coin currently offering better prospects.

Promising Alternative

XRP20 touts itself as the next evolution of Ripple (XRP). The project commits to revitalizing the passion of the XRP Army with this ERC-20 token that brings staking utility. It offers traders and investors a chance for a do-over after missing out on XRP when the token was still affordable. Nevertheless, it is imperative to note that XRP20 is not affiliated with Ripple, XRP, or their ecosystem in any way. The XRP20 website articulates this disclaimer.

The token is currently in the presale stage, with up to $824.111K raised in XRP20 token sales. This is out of the $1.850 million stage target. If you buy XRP20 at the current price of $0.000092, you save a lot as the token price will increase upon listing.