- Shiba Inu price went parabolic during the weekend.
- It then pulled back on Monday after the weak China GDP data.
Shiba Inu price pulled back after going parabolic during the weekend. The SHIB token retreated to a low of $0.000016, which was lower than the weekend high of $0.000018. Other meme coins like Dogecoin, Dogelon Mars, and Floki Inu have also pulled back in the past few days.
Why is SHIB pulling back?
Shiba Inu is the second-biggest meme coin in the world after Dogecoin. It has a market cap of over $9.6 billion, making it the 12th biggest coin in the world.
Shiba Inu has transitioned from a meme coin to becoming a full blockchain platform with its own ecosystem. For example, the developers launched ShibaSwap, a leading player in decentralized finance (DeFi). According to its website, ShibaSwap has a total value locked (TVL) of over $40 million.
In ShibaSwap, users can provide liquidity to earn BONE, a cryptocurrency in the ecosystem, Further, one can bury coins ro earn returns and swap their tokens. Further, it has a non-fungible token (NFT) marketplace where users can mint and create tokens.
Shiba Inu price surged during the weekend as investors in social media pushed the token. At its peak during the weekend, the coin was up by 153% from its lowest level this year.
The token then pulled back on Monday as the rest of the cryptocurrency industry declined. Bitcoin dropped to $24,800 while Ethereum retreated to $1,950. The total market cap of all cryptocurrencies declined to $1.2 trillion.
The decline also coincided with the sell-off in global stocks following the relatively weak economic data from China. The numbers revealed that the country’s retail sales, industrial production, and fixed asset investments declined. As a result, global stocks declined sharply, with the Dow Jones and Nasdaq 100 indices declined by more than 0.50%.
Shiba Inu price prediction
The four-hour chart shows that the SHIB price went parabolic during the weekend. It rose to a high of $0.000018, which was the highest level since May this year. The coin managed to move above the important resistance level at $0.000013, which was the highest level on July 20th.
The coin has moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved from 90 to 70. Therefore, the coin will likely continue pulling back and retest the important support at $0.000013. It will then resume the bullish trend as worries of China slowdown subside.
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