After being accused of being a clone, Shibarium, a Layer-2 solution for the Shiba Inu cryptocurrency, has caused turmoil within the community, leading to a sharp collapse for Shiba Inu, which has emerged as one of the dominant meme coins after Dogecoin. In addition, the recent severe plunge in SHIB’s price 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 have played a significant role in the recent decline of the Shiba Inu price.
Following this allegation, whale investors have already started their move as data from WhaleAlert shows that a whale transferred 800 billion Shiba Inu coins from Shiba Inu staking to an unknown wallet, indicating that the whale has withdrawn $8.23 million worth of SHIBs from the program amid speculation about the copying of Shibarium code.
Along with the accusations of cloning, the Shiba Inu community has also been in turmoil over concerns about the development team’s transparency. Trophias, a member of the metaverse team working on Shibarium, has alleged that they were not kept informed about the project’s progress. In addition, due to concerns about the legitimacy of the project, the community has seen an exodus from the staking contract, resulting in the unstaking of $5 million worth of BONE tokens.
Will SHIB Price Make Further Downturn?
Shibarium’s accusations have dealt a severe blow to the Shiba Inu ecosystem, resulting in a 13% decline in the value of its native SHIB token. As a result, investors and users are seemingly reassessing their involvement in the project, and the market sentiment has turned negative.
The 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 breakout below the support level may occur if sellers increase their selling pressure, leading to a potential drop toward the $0.00000975-$0.00001 zone. In extremely bearish situations, the dog-themed altcoin could potentially plummet to test the $0.00000799 support level or even revisit the June 18 swing low at $0.00000712.
As of writing, Shiba Inu trades at $0.00001044, with a decline of 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’s price is projected to take support near the $0.0000095 level and initiate a fresh upward momentum.
If SHIB’s price breaks the $0.00001431, it will gain enough buying pressure and push its price above $0.00002.