What is happening?
As a seasoned researcher with a penchant for deciphering the intricacies of the crypto market, I must admit that this past week has been quite a rollercoaster ride. The tumultuous journey of Shiba Inu (SHIB) is reminiscent of a game of tug-of-war, with the bulls and bears seemingly unable to gain the upper hand.
Over the last seven days, the value of Shiba Inu coin hasn’t been great. Its overall drop in worth has amounted to 12.12%. Unfortunately, the dog-themed meme coin hasn’t managed to surpass significant resistance as it attempted to reach its late September high of $0.000021.
Last Friday, it was disclosed in an article by The Wall Street Journal that U.S. authorities are apparently scrutinizing Tether, the company responsible for the stablecoin USDT, over possible breaches of anti-money laundering regulations and international sanctions rules.
According to reports, Federal investigators, primarily from the U.S. Attorney’s Office in Manhattan, are looking into allegations that some external entities may have utilized Tether for illegal transactions. However, at this point, no formal accusations have been made.
According to Tether’s CEO, Paolo Ardoino, there is currently no active investigation against Tether, as he emphasized that there isn’t enough evidence to indicate they are being examined.
In their formal reaction, Tether labeled the piece as “unfounded reporting,” arguing that it makes unsubstantiated claims without credible evidence to back them up.
After the release of this report, the value of Bitcoin dropped from $68,600 to $66,589, while Tether momentarily fell to 99.81 cents. The overall cryptocurrency market adjusted its stance in response to the latest news.
After the news of the supposed Tether investigation broke, SHIB declined around 4.16%.
Shibarium spike
On Wednesday, it was observed that Shibarium, the secondary blockchain associated with Shiba Inu, experienced a significant surge of 1,557% in active user accounts based on data from Shibariumscan.
The number of active accounts surged dramatically, going from 1,685 to 26,237, mainly because many dormant accounts became active again. Only 3,814 fresh accounts were created using new addresses.
The unexpected surge in action led to a significant increase in daily transactions on Shibarium, with the number of transactions skyrocketing by approximately 1,380%. This surge brought the transaction count up from around 128,047 to an astounding 1.76 million.
Today’s activity saw the highest number of transactions on the Shiba Inu blockchain since March, demonstrating a resurgence in network activity surrounding the well-known meme cryptocurrency.
Will meme coins recover?
Right now, Shiba Inu is being traded for approximately 0.00001692 USD, but it’s maintaining an ongoing upward trajectory, possibly benefitting from the surge in trading volume that other meme coins are experiencing as well.
Shiba Inu is getting closer to a possible “golden cross,” a technical symbol that typically signals substantial price hikes. In recent times, SHIB has seen an uptick in its momentum, and its 50-day Moving Average (EMA) is nearly crossing over the 200-day EMA, which is a significant part of this optimistic outlook.
Should the 50-day Exponential Moving Average (EMA) surpass the 200-day EMA, it might spark fresh buying enthusiasm and potentially strengthen Shiba Inu‘s (SHIB) price.
Although a golden cross doesn’t necessarily trigger a bull run, it often signals possible growth, particularly when accompanied by higher trading activity and improved market confidence. Shiba Inu (SHIB) has demonstrated tenacity, rebounding from crucial support points and gradually regaining momentum.
It’s uncertain if the overall crypto market can withstand the recent unfavorable reports about Tether. However, if the Wall Street Journal article turns out to be inaccurate, there’s potential for the momentum of October’s rally to extend into November.
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2024-10-26 15:39