When dog-themed altcoin Shiba Inu (SHIB-USD) was launched in August 2020, some traders didn’t take it seriously. The skeptics saw it as a knock-off of Dogecoin (DOGE-USD), but that’s not really fair to Shiba Inu or its investors.
After a while, however, the cryptocurrency community started to appreciate the value of the SHIB token. Some people have even called it a Dogecoin killer.
There’s plenty of room in the crypto-verse for both tokens to co-exist, so let’s not start a dog fight. Instead, we should celebrate the progress of Shiba Inu as it gains acceptance and credibility.
First, we’ll start off with a little bit of technical analysis. There are a lot of zeros involved, but that’s not unusual in the world of low-priced cryptocurrencies.
Analyzing the Shiba Inu Price
In the world of financial assets, usually the investors want to add zeros. When it comes to the Shiba Inu coin, however, the HODL-ers (loyal investors who “hold on for dear life”) want to see some of the zeros disappear.
SHIB started off 2022 at .000034 cents, collapsed to .000019 cents, and then came right back to .000034 cents before crashing again. So, we can discern a clear-cut resistance level here, even when dealing with fractions of a penny.
Resistance levels aren’t necessarily a bad thing. It’s important to keep an eye on the .000034-cent level, though, as the sellers could return if and when the Shiba Inu price gets back there.
As of mid-March, SHIB was trading at .000022 cents, which certainly looks like a dip-buying opportunity. Perhaps if you HODL long enough, you’ll get to see some of those zeros evaporate.
Breaking the Internet?
For a cryptocurrency to gain acceptance, it helps when large businesses accept it as a form of payment. However, not every company is willing to take a chance on a low-priced cryptocurrency.
Therefore, we should give credit to Adam Aron, the CEO of global movie-theater chain AMC Entertainment (NYSE:AMC), for his bold stance on cryptocurrency adoption.
As a recent tweet demonstrates, Aron is responsive to the demands of AMC’s customers who have wanted the company to accept dog-themed crypto coins as payment:
Your replies just might break the internet, given your clear enthusiasm and interest in cryptocurrency. As promised, the amctheatres.com web site now accepts Dogecoin and Shiba Inu for online payments! A special shout out to @BitPay for helping us to make this happen.
Apparently, this event was highly anticipated as SHIB and DOGE supporters have been waiting since September 2021 for AMC to accept these two cryptocurrencies.
This is a major coup for Shiba Inu HOLD-ers, as AMC Entertainment is the largest movie-exhibition business in the U.S., Europe and the world.
Since it owns/operates around 950 theaters globally, AMC can help to introduce cryptocurrency as a form of payment to many thousands of movie-goers.
Clearly, the demand for SHIB is growing, and not only in North America. Truly, it’s becoming a phenomenon of global proportions.
For example, as I learned from InvestorPlace contributor Brenden Rearick, Shiba Inu is becoming quite popular in Turkey. In that country, President Recep Tayyip Erdoğan “has been fighting on behalf of country-wide crypto adoption,” Rearick explained.
This makes perfect sense, as the inflation problem has been quite severe in Turkey. If you think inflation is unmanageable in the U.S., then check this out: according to Trading Economics, Turkey’s annualized inflation rate in February of 2022 was 54.44%.
Rearick reported that Turkey’s finance minister recently met with a Turkish Shiba Inu influencer to discuss widespread adoption of the cryptocurrency. Is it possible, then, that a small crypto coin could make a big difference in combating inflation?
The Bottom Line
Anything is possible in the world of cryptocurrency, it seems. You just never know which business (or which country, for that matter) will be the next one to accept crypto coins.
AMC Entertainment is a global company. So, AMC’s acceptance of SHIB as a form a payment is a huge victory for the HODL-ers.
Furthermore, Shiba Inu could be part of the solution to Turkey’s inflation problem. It’s truly amazing to consider the progress of this low-price crypto coin.
What’s next for SHIB, then? Only time will tell, but don’t be surprised if some of those zeros disappear sooner than you expected.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.