The increase in the Shiba Inu (SHIB) price in October has resulted in the SHIB token becoming the second largest digital asset by market value.
The Shiba Inu’s market capitalization jumped to $ 11.08 billion earlier this week, currently surpassing $ 10 billion, placing it in the top 20 in market value for the first time. As a result, the Dogecoin-inspired meme cryptocurrency has become more valuable than popular blockchain projects such as Stellar (XLM), Polygon (MATIC), and Tron (TRX).
Market value of SHIB versus price. Source: messari
The rise in the Shiba Inu rating follows a tweet from Elon Musk. On October 4, the Tesla boss posted a photo of his Shiba Inu dog with the caption “Floki Frunkpuppy”. SHIB shares jumped more than 40% an hour after the tweet.
Cryptocurrency speculators often read Musk’s tweets. For example, a billionaire businessman helped drive the price of Dogecoin (DOGE) higher in early 2021 via Twitter.
After the opening of the 4th quarter of 2021, the SHIB rate is growing by about 400% weekly to $ 0.0000725. The coin then tested its five-month high of $ 0.00003528 on October 7.
However, on the same day, SHIB underwent a 40% profit correction as some traders decided to cancel their spot positions for temporary profit. As a result, the market value of the Shiba Inu fell simultaneously, reaching $ 8.06 billion in October.
Daily SHIB / USDT price chart. Source: TradingView.com
Selling in the Shiba Inu markets against the dollar and bitcoin (BTC) has spurred buying sentiment over the withdrawal. The rebound that followed lifted the SHIB price by more than 45%. At an all-time high on October 9, the token traded at $ 0.0003020 with a market value of around $ 10.73 billion.
What’s next for SHIB?
On October 9, the price of the Shiba Inu fell more than 5% and reached a low of $ 0.00002575 per day. At the same time, the cryptocurrency indicated the formation of a possible descending triangular pattern, indicating further losses.
On the subject: Is “a lot” coming? Dogecoin Fractal Table Shows Shiba Inu Gains 390% In Q3
In detail, descending triangles are usually bearish patterns that form when price trends fall, when they swing between an area defined by two converging trendlines: a downtrend and a horizontal, such as formed by the SHIB in the chart below.