- The US SEC classifies Shiba Inu and other cryptocurrencies as digital commodities.
- Despite this move, the SHIB price faces a significant downturn.
- If SHIB manages to hold above $$0.000006, it could reach $0.000012.
The US Securities and Exchange Commission (SEC) recently classified Shiba Inu and other major cryptocurrencies as “digital commodities.” This significant milestone has invoked fresh hopes in investors about its potential impact on the market.
However, despite the SEC’s recognition, the Shiba Inu price has continued to decline. This signifies that the SEC’s categorization has failed to push the price up. Analysts suggest that broader market trends, investor sentiment, and lingering uncertainty in the crypto space amid the US-Iran war are outweighing the regulatory boost.
Shiba Inu Price Falls Despite SEC’s Classification
The Shiba Inu price is currently facing significant pressure amid the broader crypto market downturn. As of press time, the meme coin is valued at $0.000005858, marking a notable plunge of 2.5% in a day. Despite a marginal 0.3% weekly gain, the token has declined by about 11% in a month.
This CoinMarketCap data indicates that the token is struggling to maintain momentum as investors show a cautious outlook towards memecoins amid rising geopolitical tensions. As the US-Iran war continues to escalate, investors remain perplexed, moving their investments away from riskier assets like SHIB. This imposes greater pressure on memecoins.
The 2.5% plummet in the 24-hour trading volume underscores this decreasing investor sentiment. The daily activity, which is currently at $145.5 million, indicates a significant plummet in the buying pressure. This further contributes to the prevailing negative sentiment surrounding Shiba Inu.
According to CryptoNewsZ, this downturn is mainly caused by increasing whale activity. Per Arkham Intelligence data, a single investor sold around 14.5 billion SHIB tokens on March 15 and 16.
SEC Classifies Shiba Inu & Other Cryptos as Digital Commodities
It is worth noting that Shiba Inu’s current downturn comes despite the latest development within the SEC’s crypto regulatory efforts. The SEC released a new guidance classifying crypto assets into five categories.
According to this framework, cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, Dogecoin, Cardano, Shiba Inu, Litecoin, and Polkadot belong to the category of “digital commodities.”
The guidance, detailed in a 68-page report, explains digital commodities as assets whose value comes from the operation of a functional crypto system and the basic principles of supply and demand.
This move is part of the regulator’s initiative to coordinate regulations and strengthen the US’s position as a global crypto hub. While investors thought the move could bring massive price movements in the Shiba Inu token, it failed to make much impact.
Will SHIB Move Upwards?
According to expert World of Charts, the Shiba Inu price is poised for major upward moves if it manages to hold key levels. Recently, the token broke out from the counter trendline. This has sparked expectations of the meme coin’s sustained positive sentiment.
Now, World of Charts believe that the SHIB price will move toward the upper descending trendline, which remains the token’s next major resistance. If it manages to soar to the resistance at $0.000006858, the analyst expects a major 50% rally, with SHIB reaching a high of $0.000012. He added, “For now, the main target is the upper trendline — further breakout will be confirmed after that.”
