As a seasoned analyst with years of experience navigating the volatile world of cryptocurrencies, I find myself cautiously optimistic about Shiba Inu (SHIB) at this juncture. The recent events surrounding the SHIB DAO and the missing donation have undoubtedly raised concerns about transparency and decentralization within the Shibarium ecosystem. However, it is important to remember that such incidents are not uncommon in the nascent world of blockchain technology.
Over the past month, the value of Shiba Inu has mainly stayed within a narrow band, occasionally surging slightly above its limits around mid-August. This pattern suggests a possible downtrend for Shiba Inu’s price in the future. Meanwhile, over 90,000 dollars donated by Welly to the Shiba Inu project have disappeared, causing worry among community members about the trustworthiness and true decentralization of the Shibarium blockchain.
SHIBDAO Hack: Missing $91K Ends Up in CEX
On August 24, developers of Shiba Inu revealed the creation of SHIB DAO, aiming to make the Shibarium blockchain more democratized. Then, on September 2, a governance proposal for the 37.5 ETH donated by Welly’s, the official fast food chain of Shiba Inu, in 2022 was put forward on the SHIB DAO platform by Shytoshi Kusama.
#SHIBARMY, IMPORTANT ANNOUNCEMENT by @DavinciShib
Let’s explain the recent situation with the DAO @ everyone
In 2022, Welly transferred 37.5 ETH to the ShibArmy, depositing it into a multi-signature wallet controlled by the Defense Breed team.
— Maximous Shibarium (@MaximousDarwin) September 4, 2024
Initially, the voting process was scheduled to conclude on September 4th. However, unscrupulously, someone created a fresh wallet and shifted the 37.5 ETH. As a result, the Ethereum assets got divided among three different wallets, which were subsequently transferred to various centralized exchanges.
The initial phase for the Shiba Inu Decentralized Autonomous Organization (SHIB DAO) didn’t get off to a good start, despite promises of full community participation and transparency. It appears that issues within the system were primarily caused by unscrupulous network participants rather than intentionally deceptive developers.
ShibDev Portal to Spur Growth in Shibarium (SHIBDAO)
However, not everything is bad news on the Shiba Inu ecosystem as a Head of Marketing Lucie announced ShibDev portal launch, which represents a new era for developers on Shibarium.
In the past, the performance of on-chain developments has often predicted future price changes, and at present, Shibarium isn’t showing strong signs of growth.
Glancing at essential on-chain indicators for Shibarium reveals a network facing challenges. The number of active user accounts has plummeted to its lowest point yet, leading to a decline in the volume of fresh transactions being processed on the platform.
On September 4, there were 17,222 new blocks produced on the Shibarium network, but this figure dropped significantly to 5,740 by September 5, marking a more than 50% decrease within just one day. Furthermore, the number of new contracts and verified contracts is also trending downward.
These metrics shed light into potential logic behind the launch of the ShibDev portal. Meanwhile, Shiba Inu price slipped by 0.9% in the last 24 hours to trade at $0.0000133.
Shiba Inu Price Analysis: 8% Bull Trap Increase Inbound
At the moment, the cost of SHIB is hovering within a stable range or “consolidation phase.” Despite briefly surpassing the upper limit, it subsequently fell back down, primarily due to unpredictable fluctuations in the Bitcoin market.
Over the past month, the movement in Shiba Inu’s (SHIB) price could be indicative of a possible bearish reversal pattern known as a head-and-shoulders. This pattern is typically characterized by three peaks, with two lower ones (shoulders) on either side and a higher one (head) in between. We’ve already seen the development of the left shoulder and head, and if SHIB price increases by approximately 8% to reach $0.00001450, it would signal the formation of the right shoulder, potentially suggesting a shift in market sentiment towards bearishness.
The projected Shiba Inu price indicates a potential decline of approximately 9% to around $0.00001300 if it encounters resistance at the upper price limit. If this support level is breached, there’s a possibility of an additional drop by about 15%, reaching $0.00001095, thereby completing a bearish trend reversal pattern.
Generally speaking, Shiba Inu (SHIB) is an intriguing venture backed by a dedicated community. Even under unfavorable market circumstances, SHIB might defy the pessimistic prediction and soar up to around $0.00001600.
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2024-09-06 10:38