The last 24 hours have seen the price of the Shiba Inu token rise by 4%, as the crypto market was recovering from the sell-off seen over the weekend due to the concerns sparked by SVB’s collapse.
The SHIB token was trading at $0.00001099, which was still a fall of 1.5% in 7 days and a drop of 15% in a month. But, the meme coin has recorded a 35% rise since the start of this year.
WhaleStats latest data shows that the Shiba Inu token is still one of the market’s most traded ERC-20 tokens. In addition, it also accounts for the biggest holdings amongst large investors in dollar terms.
Indicators have suggested that the current price rally in the SHIB token could last for several more days, as its Relative Strength Index (RSI) rose to just above 40 from 30.
Since the RSI has climbed above the oversold position shows that the rally may continue during the week.
This is also supported by the fact that the price of the Shiba Inu token has not yet risen above the 30-day moving average.
There is a possibility that if the Shiba Inu token is able to go past the resistance level of $0.000015, it could go even higher.
The second-largest meme token in the market could reach the $0.00001250 level, which it had been eyeing in the beginning of the month.
There is a strong chance that the SHIB token could hit this level by the end of March, as the banking crisis could end up pushing people towards the crypto space.
The collapse of the SVB has proven to be the trigger behind the current rally in the crypto market as well as the Shiba Inu token.
The banking crisis
There are numerous banks that are failing, which include Silicon Valley Bank, Signature and Silvergate and a number of others like Credit Suisse have seen their stock price decline.
Therefore, it is apparent that people are looking for other avenues to invest their money other than banks.
While the US Federal Reserve and other authorities have stepped in for calming the markets down, it is difficult to determine when the situation will stabilize.
This uncertainty could certainly benefit SHIB as well as the other cryptocurrencies in the market. Apart from that, the Shiba Inu token is also likely to benefit from the launch of Shibarium.
The layer-2 protocol’s beta phase was rolled out over the weekend. In the long-run, this would undoubtedly add to the utility of the Shiba Inu ecosystem.
Thanks to Shibarium, it will become cheaper, faster and easier to use Shiba Inu and this is likely to give a solid boost to the demand of the SHIB token.