Shiba Inu is now a top 20 cryptocurrency with SHIB price rising 300% in 9 days

The rise in the price of Shiba Inu (SHIB) so far in October led to the SHIB token becoming the 20th largest digital asset by market capitalization.

Shiba Inu’s circulating market valuation jumped to $ 11.08 billion earlier this week and is currently above $ 10 billion, placing it in the top 20 by market capitalization for the first time. As a result, the Cryptocurrency meme inspired by Dogecoin became more valuable than popular blockchain projects like Stellar (XLM), Polygon (MATIC) and Tron (TRX).

SHIB market capitalization versus price. Source: Messari

The growth in Shiba Inu valuation occurred immediately after a tweet posted by Elon Musk. On October 4, Tesla’s CEO posted a photo of his dog, a Shiba Inu breed, with the caption “Floki Frunkpuppy.” SHIB jumped more than 40% an hour after the tweet.

Crypto speculators tend to read too much on Musk’s tweets. For example, the billionaire businessman was instrumental when pushing DogecoinDOGE) highest price in early 2021 via Twitter.

SHIB price increased almost 400% a week after opening the fourth quarter of 2021 to $ 0.00000725. In doing so, the token retested its five-month high of $ 0.00003528 on October 7.

Nevertheless, SHIB underwent a price correction greater than 40% on the same date some traders decided to undo their spot positions for interim profit. As a result, Shiba Inu’s market capitalization fell with par, hitting a low of $ 8.06 billion on Friday.

SHIB / USDT daily price chart. Source: TradingView.com

The sell off in the Shiba Inu markets (against the dollar and Bitcoin) triggered a buying sentiment. There was a rebound rally, which pushed the price of SHIB up by more than 45%. At its all-time high on Saturday, the token was changing hands for $ 0.00003020, with its market capitalization around $ 10.73 billion.

What’s next for SHIB?

Shiba Inu price fell on October 9 by more than 5% to hit a new intraday low of $ 0.00002575. In doing so, the cryptocurrency hinted at the formation of a possible descending triangle pattern, suggesting additional losses ahead.

Related: ‘Much ahead? Dogecoin Fractal Chart Threatens Shiba Inu’s 390% QTD Rally

In detail, descending triangles are typically bearish patterns that form when price trends decline while fluctuating between an area defined by two converging trend lines: one descending and the other horizontal, such as those that SHIB has formed in the chart below. .

SHIB / USDT four-hour price chart with descending triangle setup. Source: TradingView.com

The formation of lower highs above a stagnant support line indicates a weakening of buying sentiment among traders. As a result, the price ultimately tends to break below the horizontal trend line. As you do so, your target changes to a level with a length equal to the maximum height of the triangle.

In other words, the price of SHIB may drop below $ 0.00001000 in the next few sessions if the support level mentioned above does not hold.

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