Are Shiba Inu (SHIB) shareholders adopting a cautious optimism?

Shiba Inu 'barked' the loudest in 2021

Few crypto assets have what it takes to surpass Bitcoin in any market area. However, Shiba INU existed to accomplish the impossible.

With 43 million more views than Bitcoin in 2021, Shiba Inu was the most well-liked cryptocurrency. Shiba Inu 'barked' the loudest in 2021, emerging as the dominant dog-themed cryptocurrency.

Shiba Inu is an altcoin or meme coin that runs on Ethereum and has the Shiba Inu Japanese dog breed as its mascot. More cryptocurrency exchanges started listing SHIB as its popularity and market value increased.

Shiba Inu has recently been launched on CoinSwitch Kuber's platform in India, and trading there begins at $100.

Things may not be the same for SHIB and its investors

However, currently, SHIB recorded daily gains that were more than 5% negative. The meme coin had a market capitalization of more than $4.7 billion and was trading at $0.000008641.

Elon Musk centric

Elon Musk's endorsement of a cryptocurrency is equivalent to receiving the official blue tick. Musk's tweets have the enormous power to make or ruin a cryptocurrency.

Thankfully, Elon Musk tweets about Shiba Inus, but for how long? He also tweeted about getting a Shiba Inu dog, which gave the SHIB token its first significant boost and helped it rise by around 300%.

Penny cryptocurrency is erratic

Due to market volatility and a lack of regulation, investing in cryptocurrencies is dangerous. Additionally, cryptocurrencies and meme coins pose new difficulties.

Even meme coin exchanges list them with a degree of caution.

This highlights the fact that Shiba Inu is still a speculative cryptocurrency asset with a deflationary trend despite having practical use cases, a total supply of close to 550 trillion, and a market worth well over $19 billion.

A partnership with Amazon could change SHIB's course

The Relative Strength Index (RSI) and stochastic indicators for SHIB were both oversold, according to CryptoQuant's statistics.

This could be interpreted as a bullish sign, indicating that prices would rise over the next few days. Due to lessening selling pressure, SHIB's exchange reserve was also decreasing.

Furthermore, there has been a rumor going around about SHIB. According to the Twitter account Shiba Inu News, SHIB is anticipated to work with Amazon soon.

It's possible that this declaration will permanently alter SHIB's destiny.

Due to the token's inclusion on the list of cryptocurrencies held by the top 500 Ethereum whales over the previous 24 hours, this news may have increased whale interest in SHIB. 

Given that 106,780,540 SHIB tokens had been burned in the previous seven days, the memecoin's burn rate was also quite high. This was a good indicator because it demonstrated how deflationary SHIB is.

The Market Value to Realized Value (MVRV) of SHIB has significantly decreased during the past week. This can serve as a sign of a market bottom.

Additionally, the volume of the meme coin increased recently, encouraging investors. Shiba Inu's network expansion did, however, show a downturn, which was concerning.

But are these sufficient?

Despite the measures favouring SHIB, its Exponential Moving Average (EMA) Ribbon showed that the market was still in favour of the bears. The 55-day EMA was much below the 20-day EMA.

However, both the Chaikin Money Flow (CMF) and the Money Flow Index (MFI) were well below the neutral line. This might prevent SHIB's price from rising in the near future.

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