After being accused of being a clone, Shibarium, a layer 2 solution for the Shiba Inu cryptocurrency, caused unrest in the community, leading to a brutal collapse for Shiba Inu, who became one of the dominant meme coins after Dogecoin. Moreover, the recent sharp drop in the price of SHIB has dashed the bullish hopes of the community that occurred after the launch of Shibarium.
SHIB Whales are on the move
Controversy has already hit Shiba Inu’s upcoming Shibarium blockchain, with allegations surfacing that the developers have copied Rinia, a separate project. These accusations played a significant role in the recent drop in the price of the Shiba Inu.
Following this allegation, whale investors have already started their movement as WhaleAlert data shows that a whale transferred 800 billion Shiba Inu coins from Shiba Inu staking to an unknown wallet, indicating that the whale withdrew 8.23 million dollars from the program’s SHIB amid speculation. on the copy of the Shibarium code.
Along with accusations of cloning, the Shiba Inu community has also been upset over concerns about the development team’s transparency. Trophias, a member of the metaverse team working on Shibarium, alleged that they weren’t kept informed of the progress of the project. Additionally, due to concerns over the legitimacy of the project, the community saw an exodus from the staking contract, resulting in the withdrawal of $5 million in BONE tokens.
Will SHIB Price Lower Further?
The Shibarium accusations dealt a severe blow to the Shiba Inu ecosystem, causing its native SHIB token to drop in value by 13%. As a result, investors and users are apparently re-evaluating their involvement in the project, and market sentiment has turned negative.
SHIB price on the hourly chart is currently hovering near the local support level at $0.00001020. It is crucial to monitor the closing price as a break below the support level may occur if the sellers increase their selling pressure, leading to a potential decline towards the $0.00000975-$0.00001 area. In extremely bearish situations, the dog-themed altcoin could potentially drop to test the $0.00000799 support level or even revisit the June 18 low at $0.00000712.
At the time of writing, Shiba Inu is trading at $0.00001044, down over 4% in the last 24 hours. However, a well-known crypto trader, MMBtrader, gives a bullish outlook for the SHIB token in the long term. According to him, despite recent concerns, SHIB price is likely to take support near the $0.0000095 level and initiate new upward momentum.
If the price of SHIB breaks above $0.00001431, it will gain enough buying pressure and push its price above $0.00002.