The Shiba Inu (SHIB) price crashed by 7% in the last 24 hours, alongside the drop in the broader crypto market. This downward pressure is due to external factors that put Shiba Inu’s projected October rally at risk.
Why The Shiba Inu Price Crashed by 7%
The Shiba Inu price crashed due to the Israel-Iran conflict, which escalated on October 1. Iran launched several missiles against Israel in retaliation for the killing of Iranian-backed militia Hezbollah leader Hassan Nasrallah and others. The rising tensions in the middle have brought about fear and uncertainty in the market, which sparked the wave of sell-offs for SHIB, causing its price to drop.
Risk assets like Shiba Inu are usually affected the most in times like this, as geopolitical tensions like the Israel-Iran conflict always affect the global markets. Moreover, Bitcoin (BTC) has witnessed a significant price correction since Iran launched the missile strikes against Israel, with the flagship crypto dropping to as low as $60,000.
As such, the SHIB price was bound to crash alongside Bitcoin, given the strong positive correlation between both coins. The Shiba Inu price is still at risk of suffering more price declines as Israel Prime Minister Benjamin Netanyahu has suggested that his country is going to launch a retaliatory attack against Iran.
He stated that Iran made a big mistake and they will pay for it. Iran has also warned that they are prepared to carry out broader strikes if Israel retaliates, indicating that this could blow up into a full-scale war. Such development could easily lead to the Shiba Inu price losing at the gains it made in September.
Meanwhile, the Isreal-Iran conflict has also acted as an obstacle to Shiba Inu’s projected rally this month. The meme coin was on the verge of a historic run this October, considering it has always enjoyed positive monthly returns. However, this run could be impeded if the rising tensions in the Middle East persist.
SHIB Whales Remain Unbothered
Shiba Inu whales are still accumulating the meme coin amid the Israel-Iran conflict and price decline. Data from the market intelligence platform IntoTheBlock shows that SHIB’s large transactions have surged almost 13% these past few days, indicating an accumulation trend among these investors. Specifically, 6.33 trillion SHIB tokens have been traded in the last 24 hours.
Santiment also highlighted how Shiba Inu is currently leading the Whales frenzy. The meme coin’s large transaction count is said to spiked by 360% this past week. This is undoubtedly a positive as it shows these Whales’ confidence in Shiba Inu’s potential ahead of the next leg of the bull run.
At the time of writing, Shiba Inu is trading at around $0.000016, down over 8% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
Credit: Source link
